Fast Facts

Calif. median home price: September 2010: $309,900 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region September 2010: Santa Barbara So. Coast $879,750 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region September 2010: High Desert $124,960 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)

Mortgage rates: Week ending 11/04/2010 30-yr. fixed: 4.17 Fees/points: 0.8% 15-yr. fixed: 3.57% Fees/points: 0.8% 1-yr. adjustable: 3.26% Fees/points: 0.7% (Source: Freddie Mac)

Weekly Fraud Alert: DRE Warns of Imposter Landlords

The California DRE issued a consumer alert this week warning renters to be on the lookout for fraudulent landlords. The imposters often are able to convince potential renters to pay money, which may include a first and last month's rent and a security deposit, as well as follow up rental payments, for a house that is not owned by the supposed landlord.

For more information, including warning signs, visit the DRE consumer alert at http://takeaction.realtoractioncenter.com/ct/37AVyI51ETbz/

Source: California Department of Real Estate

Home Values Decline 4.3 Percent in Q3

Home values declined 4.3 percent year-over-year in the third quarter and 1.2 percent compared with the second quarter to $179,900, according to the Zillow Home Value Index.

Nearly 25 percent of single-family homeowners with mortgages were underwater on their mortgage in the third quarter – the highest level since Zillow began tracking negative equity in 2009.

In quarter-to-quarter comparisons, home values declined in 77 percent of markets covered in Zillow's report. In five of those markets -- the California MSAs of Los Angeles, San Diego, San Francisco, San Jose and Ventura -- home values began to fall again after five consecutive quarters of increases.

Source: Zillow

First-Time Buyer Housing Affordability Improves Slightly in Q3

Housing affordability among first-time home buyers improved slightly in the third quarter of 2010, both on a quarter-to-quarter and year-to-year basis, according to C.A.R.'s First-time Buyer Housing Affordability Index (FTB-HAI). The percentage of first-time buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter of 2010. In the second quarter of 2010, the Index was a revised 65 percent and was 64 percent in the third quarter of 2009.

"With interest rates at historic lows, which have led to lower monthly mortgage payments, affordability continues to remain at near record-high levels in California," said C.A.R. President Beth L. Peerce.

"Another high point for first-time buyers is the current ratio between the California median price and the California median household income. During the third quarter, the ratio stood at 5 to 1 and was at a level we haven't seen in the last 10 years. This is opening many doors for potential first-time buyers." First-time buyers, who tend to purchase homes equal to 85 percent of the prevailing median price, needed to earn a minimum annual income of $42,300 to qualify for an entry-level home of $266,620 during the third quarter of 2010. The monthly payment, including taxes and insurance, was $1,410, assuming a 10 percent down payment and an adjustable effective interest rate of 3.66.

Source: C.A.R.