Home Prices on the Rise in California
After a year of sizable improvements to home prices nationwide, homeowners with properties for sale in Los Angeles County may be more confident in their ability to earn a profitable amount when unloading their property. The latest report from the California Association of Realtors found that higher home prices have made the market less affordable, but this indicates healthier conditions.
CAR said that the percentage of buyers who could afford to purchase a median-priced existing home in the Golden State decreased to 48 percent in the final quarter of 2012, down slightly from the previous quarter when 49 percent could afford a property. This figure is also down from the fourth quarter of 2011, when 55 percent of residents could purchase a home comfortably.
Despite the slight decline in affordability, the report noted that some markets in Southern California, including Los Angeles County, Napa, Ventura and Santa Cruz saw improvements on a quarter-over-quarter basis, but real estate in Santa Barbara, San Francisco and Monterey counties saw notable gains in home prices.
The state’s median price was $353,190, considerably higher than the national median. This required homebuyers to earn a minimum income of $66,940 each year to qualify for a mortgage in the last quarter of the year.