Foreclosures, the Supply of Homes, and Prices
The median price in California continued to increase in September, driven by lean inventory levels, while home sales remained on track with expectations for the month. The median price of a detached existing single family home was $296,090 in September, up 1.1 percent from the August median of $292,960, but down 7.3 percent from the September 2008 median price of $319,310. Barring a sudden decline in home values over the next few months, the statewide median price will register year-over-year gains by year end, although it will still be well below the mid-decade peak..

2009 Survey of California Home Buyers - Highlights
After back-to-back years of sharp declines in sales, the California housing market bounced back in 2008 with a 27 percent increase in sales. The increase was due in large part to the growth in the absorption of distressed properties, which comprised over half of the sales. With deeply discounted distressed sales flooding the market, prices have dropped significantly since early 2008. The accumulation of foreclosures, REOs, and short sales will continue to put downward pressure on home prices, until mortgage problems begin to subside in the second half of 2009.

2008-2009 State of the California Housing Market Report - Highlights
This year’s State of the California Housing Market report examines the developments in the housing market and real estate finance over the past year, places recent events into a historical context, and looks ahead to 2009. The annual report also provides detailed statistics on consumer demographics, data on home buying and selling behaviors, analyses on current housing market conditions, and insights on the direction of the market.

2009 Rent Versus Buy Analysis
Given recent changes in home prices and the current low mortgage rate climate, there have been significant gains in affordability for prospective first-time homeowners. Earlier in 2009, a provision in the Stimulus Bill provided for a first-time Homebuyer Tax Credit of 10 percent of the purchase price of the home up to $8,000. The CALIFORNIA ASSOCIATION OF REALTORS® analyzed the difference between renting and buying a home in light of recent market and policy developments. Housing costs and tax implications of buying a home and renting a home were computed as a part of the analysis.