Housing affordability takes dip in L.A., California

Only 42 percent of L.A. buyers could afford to purchase a median priced single-family home ($355,700) in the third quarter, says the California Association of Realtors, which is down from 49 percent for the previous three months and unchanged from the third quarter of 2011. Affordability levels were slightly higher statewide. Given the recent increases in the median price, the drop-off isn't that surprising. Every Socal county experienced lower affordability than the previous quarter. What really seems to be affecting the market is a lack of inventory. Desirable properties are routinely getting multiple offers, with sales above the asking price not at all uncommon. This has the effect of increasing prices and lowering affordability levels.

Housing Affordability Index
--U.S. - 67%
--California - 49%
--Los Angeles - 42%
--Orange County - 34%
--Riverside County - 63%
--San Bernardino - 77%
--San Diego - 43%
--Ventura - 47%
--San Francisco - 25%
--Marin - 27%
--Santa Clara - 32%