The city of Los Angeles claimed the top spot for the least affordable major metro market in the nation surpassing San Francisco, which held the position for the last five years. In the Los-Angeles-Long Beach-Glendale market, just 9.1 percent of new and existing homes are considered to be affordable to households earning the area's median income. This information comes from the National Association of Home Builders/Wells Fargo Housing Opportunity Index released last week.
Nine out of the top 10 least affordable housing markets are in the Golden State according to the report, including all of the top five. The San Diego-Carlsbad area ranked number six.
Overreaching demand for housing and a shortage of homes for sale is responsible for prices pushing beyond affordable levels for most.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.