Real Estate: The best - and the worst - of 2007

It was a brutal year for housing - but not all markets are ailing.

By Les Christie, CNNMoney.com staff writer

Top 5 unaffordable markets (all cities)
City	Median income	Median price	% affordable homes
Napa, CA	$75,800	$585,000	3.3%
Los Angeles, CA	$61,700	$515,000	3.7%
Salinas, CA	$63,400	$520,000	4.2%
Santa Ana, CA	$78,700	$585,000	4.8%
San Luis Obispo, CA	$64,200	$500,000	5.7%

Source: Wells Fargo and the National Association of Home Builders

4 of 9

Least affordable major city

Los Angeles, Calif.

Key stat: Only 3.7% of homes sold in L.A. during the third quarter were affordable to families earning the median income for the area ($61,700).

According the index by Wells Fargo and the National Association of Home Builders, that's an improvement over a year ago, when less than 2% of houses were affordable.

Even worse is Napa, Calif., wine country, USA. Only 3.3% of the homes sold there in the third quarter could be afforded by residents earning the median household income ($75,800) for the area.

Last updated December 28 2007: 2:29 PM ET

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