Higher home prices reduce California housing affordability.

Rising home prices offset lower interest rates, reducing housing affordability in California during the third quarter of 2012, C.A.R. reported Monday.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California fell to 49 percent in the third quarter of 2012, down from 51 percent in second-quarter 2012 and from 51 percent in third-quarter 2011, according to C.A.R.’s Traditional Housing Affordability Index (HAI).

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