Housing affordability has more than doubled in response to the decline in home prices along with historically low mortgage rates, creating a tremendous opportunity for home buyers in California. The affordability index statewide is now over 60%, due to the combination of favorable prices, low mortgage rates, and home buyer tax credits. Sales of distressed properties accounted for just over half of the state’s transactions.

Forty-nine percent of all buyers purchased a home through a traditional market sale, while 38 percent purchased a REO/bank-owned property. Only 13 percent of buyers purchased a short-sale property.

There are good deals out there, and this market correction has allowed many more California families to afford a home!