In addition to real estate investors and agents, the RealtyTrac website can be a great help to first-time homebuyers looking for a way to get into a home at a price that is more affordable, even in areas where prices seem out of reach for most people.

Affordability is the key here. Especially in light of the new consumer index just announced by the California Association of REALTORS®. Called the C.A.R.’s First-Time Buyer Housing Affordability Index (FTB-HAI), it is a wake-up call for first timers in that it measures the percentage of first-time buyers who can legitimately afford to purchase a median-priced home in California. And the news is not encouraging.

As of Q2 2006 the index stood at 23 percent, down from 26 percent for the previous quarter and 30 percent for Q2 2005. So the number of first-time homebuyers who can afford the median-priced home in California — now $482,000 — is steadily declining.

According to C.A.R., the minimum household income necessary to purchase a median-priced home is now $98,720. Assuming a 10 percent down payment, the monthly mortgage payment on an adjustable-rate mortgage (ARM) at a rate of 6.48 percent is $3,290.

These numbers are high, especially when compared to the U.S. as a whole, which had a median price of $193,380 for Q2 2006. The minimum qualifying household income to afford that house was $39,600, with a monthly payment of $1,320. In both instances the monthly payments factor in the cost of taxes and insurance.

As for overall affordability for first timers, the high desert area of Southern California is the most affordable at 36 percent, while the least affordable area of the state is the Santa Barbara area at 14 percent, the C.A.R. reports.

While the industry experts are all declaring the cycle to have shifted to a “buyer’s market,” that fact does not make affording the purchase any easier and that’s where RealtyTrac can be of assistance.

Check out the testimonial from the McChesneys, for instance. First-time buyers who bought a house in six months for 35 percent under prevailing market prices using the RealtyTrac website. Real estate agents who specialize in helping out first-time homebuyers will also find the website to be a great resource.

Check it out at www.RealtyTrac.com and learn how you as a first-time homebuyer, or an agent assisting first-timers, can stand to profit through the purchase of a home in foreclosure.

And don’t forget to let us know what you think. We’re always looking for feedback on the usefulness of the website and the general industry information we provide.