Talking Points

Homeowners can reduce their energy bills by lowering the thermostat setting on their water heater. Most manufacturers set water heater thermostats at 140 degrees Fahrenheit, but most households don't need water hotter than 120 degrees. Households with water heaters older than 12 years should consider replacingit with a new unit. This year and next, the federal governmentis offering a tax credit of 30 percent of the cost of qualifiedwater heaters, up to $1,500.

Affordability in California during the third quarter of 2009 stood at 64 percent, meaning 64 percent of the state'shouseholds could afford to purchase an entry-level home inCalifornia, according to the CALIFORNIA ASSOCIATION OF REALTORS First-time Buyer Housing Affordability Index.The median price of an entry-level home in California was $247,150 in the third quarter of 2009, making the estimated monthly payment including taxes and insurance $1,450, accordingto C.A.R.'s affordability index.

The minimum household income needed to purchase an entry-level home in California in the third quarter of 2009 was $43,500. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price.

Source: California Association of Realtors