Are homes more affordable?
Question of the week: Are homes more affordable?
Answer: Depending on your starting point, yes.
Using median home price data from the California Association of Realtors for the month of April, homes in California are more affordable.
The median price for a single family home in April was $914,810 statewide; up 2.9% form March’s $889,190 median price, and up a scant 0.4% from last April.
Los Angeles County’s median price was $845,410 in April, down 0.6% from April 2025 ($850,270) and up 2.1% from March’s $828,300. Orange County did not see the month-to-month increase as seen in LA and the state; the median price in April was $1,470,000, only 0.2% growth from March’s $1,467,500 but up a strong 3.7% from April 2025 price of $1,417,450.
Back to our affordability question.
Comparing the statewide median price in April for 2024-2026, homes are more affordable—requiring approximately 4% less income to qualify for an 80% loan to purchase the median home.
| April 2024 | April 2025 | April 2026 | Difference 2024-2026 | |
| Median Price | $904,101 | $911,400 | $914,810 | $10,800 |
| 20% Down | $180,802 | $182,280 | $182,962 | $2,160 |
| 80% Loan | $723,208 | $729,120 | $731,848 | $8,640 |
| Rate | 6.875% | 6.625% | 6.375% | -0.50% |
| Payment | $4,750 | $4,670 | $4,565 | ($185) |
| Income | $14,394 | $14,150 | $13,835 | ($564) |
As you can see, home prices have increased very moderately over the past two years, significantly less than inflation. The decrease in mortgage rates is the primary factor in the increase in affordability in the state.
Will the trend continue?
Affordability may continue to increase for home buyers; however, it may be more due to prices declining as rates are not expected to go down in the near, or medium, future due to inflation remaining higher than desired for a the ever-elusive balance between maximizing employment with minimal inflation.
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Inflation data supports comment above out rates not helping affordability as the Consumer Price Index rose 0.5% in May, and was up 4.2% for the past 12-months, the fasted annual increase in three years. The core index (energy and food prices stripped from data) shows how much those two components impact our economy. Without those two data sets, prices in May increased 0.2% from April and were up 2.9% annually. Energy prices spiked 40% year over year—impacting every other component of CPI.
Rates for Friday June 12, 2026: Despite the spike in inflation, rates are steady for second week in a row due to comments from the White House that a deal is very close to being signed to end the conflict with Iran.
FIXED RATE MORTGAGES AT COST OF 1.25 POINTS LOCKED FOR 45 DAYS FOR PURCHASE TRANSACTIONS:
30-year conforming 6.25% Flat
30-year high-balance conforming 6.375% Flat
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down with 740 FICO score for purchase mortgages.
Are you excited for the World Cup?
Chances are you are not—most Americans are not, it is the “wrong” kind of football.
My “first” World Cup was the 1978 Cup between host country 1978 and Netherlands, my sophomore year in high school in Brussels. What I remember the most about the tournament was the numerous department stores and that had banks of televisions in their windows for the locals to watch games—sidewalk watch parties, before watch parties became a thing.
The highest rated Super Bowl audience was the glorious Super Bowl LIX when the universally beloved and respected Philadelphia Eagles wiped out the Kansas City Chiefs 40-22. The international television audience for the game was estimated to be almost 200 million viewers.
The final game of 2022 World Cup final in Qatar between Argentina and France (one of, if not the, greatest finals ever—Argentina won on penalty kicks after the game was tied 3-3 after two overtime periods) had an international television audience estimated at 1.5 billion viewers.
If the United States team can make the round of 16 it would be a great success for the team, matching results from 1994, 2010, and 2014. In 2022 the team made the quarterfinals.
The furthest the United States has ever advanced was in 1930 when they lost in the semi-finals in Uruguay to Argentina 6-1.
Due to my high school tenure there, the team I root for, after the United States of course, are the Red Devils of Belgium.
Kum op, Rode Duivels! Allez les Diables Rouges!
(Belgium is bilingual, Flemish and French)
Dennis
