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Housing affordability hindered by rising home prices

california

Housing affordability dipped for the sixth consecutive quarter, after reaching an all-time high in the spring of 2012, as significantly higher home prices shut out more California home buyers during the third quarter of 2013, the California Association of Realtors reported.

In addition, the percentage of home buyers who could afford to purchase a median-priced, existing single-family home in the state declined to 32% in the third quarter of 2013, down from 36% in first-quarter 2013 and from 49% the same period a year prior.

California housing affordability hit a record high of 56% in first quarter of 2012.  Since then, a lack of housing supply and high demand have driven up home prices sharply and significantly reduced affordability. 

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