FEWER CAN AFFORD TO BUY HOMES AFFORDABILITY FLATTENS OUT.

Byline: Gregory J. Wilcox Staff Writer

Housing affordability appears to have flatlined in California and Los Angeles County - a sign that prices may also be leveling out - but a six-figure income is still needed to buy the median-priced home, a trade group reported Thursday.

Affordability in Los Angeles County was 17 percent in December, unchanged since June and has been at 19 percent statewide six of the last eight months of 2004, according to statistics from the California Association of Realtors.

Nevertheless, affordability is down an annual 6 percentage points in Los Angeles County and 4 percentage points statewide.

Affordability, measured by the percentage of households that can afford the median-priced home in their area, should not make any big moves up or down in the coming months, said Leslie Appleton-Young, vice president and chief economist at the Los Angeles-based association.

Prices are at or near record levels in many communities and while appreciation is expected to cool along coastal areas, inland communities like those in the Antelope Valley and Riverside and San Bernardino counties will still see strong gains, Appleton-Young said.

``What we've seen in California the last several years is the rate of appreciation dwarfing any gains in the income growth and the low rates.''

For example, a family buying a home in December priced at the median of $474,480 would need a minimum household income of $110,530. This assumes a mortgage rate of 5.76 percent and a 20 percent down payment.

A year ago the income requirement was $94,070 when the median price was $401,720 and the interest rate 5.82 percent.

By comparison, the minimum household income needed to purchase a median-priced home at $188,900 in the United States in December was $44,000.

While affordability seems to be flattening out, the broader picture remained pretty much unchanged in December.

--At 41 percent, the High Desert region, which includes the Antelope Valley, was again the most affordable region in the state. Affordability improved 1 percentage point from November but fell an annual 16 percentage points as the median price jumped to $244,410 from $171,900.

--Affordability fell to 16 percent in Ventura County from 23 percent a year ago and 17 percent in November. The median price there rose to $612,460 from $488,700 in December 2003.

--In the Inland Empire, affordability was at 19 percent in December, unchanged from November but down from 33 percent a year ago. The median price across the two-county area increased to $327,210 in December from $243,320.

Jack Kyser, chief economist at the Los Angeles County Economic Development Corp., said there are signs that the long-anticipated cooling in appreciation rates is close.

``Definitely higher end homes have already chilled out,'' he said. ``And throughout Southern California you have seen a flattening out and you are going to see this sideways movement (of prices).''

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com