California remains ahead of the nation in market recovery with many first-time home buyers entering the

market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state

and federal governments. However, credit still is tight and unemployment remains high, which could hinder a

full market recovery until 2011.

KEEP THIS IN MIND

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single-family home reached its trough in February, according to data collected by the CALIFORNIA

ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in yearto-

year comparisons for the first time since August 2007.

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price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of

$271,000 in 2009.

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economists expect that foreclosures will remain flat this year compared with 2009. In 2008, many

lenders flooded the market with foreclosures, and as a result, the state’s median price declined by

historic levels. By comparison, in 2009, lenders listed properties for sale at a more measured pace,

which helped moderate another home price decline.

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a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent

by mid-2010 and close the year at 5.75 percent to 6 percent.