While there are plenty of good indicators for the Los Angeles housing market, there are signs that it may be slowing, writes Los Angles Realtor Edward Fritz in a piece for MarketWatch.
According to the California Association of Realtors Housing Affordability Report, the median price for a home in Los Angeles County in the third quarter of 2016 was $536,720 while the minimum income to qualify for a loan to purchase a home at that price level is $104,330. The means, Fritz writes, that the median priced home is affordable for about 26% of residents of the county.
So while homeowners may love seeing prices at this level, those prices severely limit who can buy. Los Angeles currently has the lowest home-ownership rate in the country. And with rents also at all-time highs, L.A. seems to be following other important national and world cities in becoming a city of the rich. We'll have to wait and see how that plays out, but it certainly doesn't bode well for the average person attaining the American Dream of home ownership in our city.