Since the Great Recession ended roughly 7 years ago, home prices in California have posted some significant gains. After dipping by more than 58% during the downturn, the median home price has more than doubled to broach the $500,000 mark for the first time since 2007. This has eroded affordability as incomes have failed to keep pace. Perhaps the one saving grace in today’s market, at least from an affordability standpoint, is that interest rates remain near historic lows, which has helped to keep mortgage payments manageable even as prices rise.
