Despite homes becoming less affordable in California, sales increase in October, according to DataQuick.
An estimated 39,254 new and resale houses and condos were sold in October, which was a 15.4 percent jump from September. On a year-over-year basis, sales were up 15.2 percent.
Meanwhile, the median price for a home sold in the Golden States dropped from $287,000 to $285,000. However, compared to a year ago the median price was up 18.8 percent.
The typical mortgage payment paid by a borrower declined slightly in October from $1,027 to $1,009. In October 2011, borrowers paid $924 on average.
Home sales were able to increase despite the fact that homes in the Golden State have become less affordable. The California Association of Realtors' Home Affordability Index showed the percentage of home buyers who could afford the median-priced, existing single-family home fell from 51 to 49 percent in the third quarter.
Perhaps mortgage rates returning to record lows could have helped offset the rising home prices to allow sales to surge in California.
