1st Time Homebuyers, Blog

How Affordable is Los Angeles Now?

Buying a home for sale in the Los Angeles area is getting cheaper, but it can still be pricey proposition. A recent article published by the California Association of Realtors shows that the entry-level housing affordability is 66% for California for the first quarter of 2010. The entry-level housing affordability measures the percentage of households that can afford to buy an entry level property. That index translates to a $246,270 price tag. While the index reached 84% for the High Desert, it hovers at 56% in Los Angeles (San Luis Obispo is the state’s least affordable with 52%). For Los Angeles County, it implies an a $281,700 entry level price, meaning a buyer would need a minimum income of $47,510 and a monthly payment (tax and insurance included) of $1,580. However, in the San Fernando Valley, properties can be found for less than the entry level price. I have a buyer who in in escrow on a nicely redone 3 bedroom/2 bath fixed up condo for $200,000. Not that long ago, another one of my buyesr scorde a 3 bedroom 2 bath condo for a $124,000 price tag. That one was a fixer, but still a great deal. Give me a call if you’d like me to find you your own great deal.