California home prices inch up in October

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California home prices edged higher last month as first-time buyers took advantage of a federal tax credit and foreclosure properties made up a smaller slice of the market.

The median price paid for a home was $257,000 in October, up 2.4% from September and down 7.6% from October 2008, according to MDA DataQuick of San Diego.

It was the narrowest annual monthly decline for the statewide median home price since September 2007. The median is the point at which half the homes sold for more and half sold for less.

About 41,280 homes were sold statewide last month, a 2.6% increase from September and a 2.4% decrease from October 2008.

Foreclosures made up 41.2% of all previously owned homes on the market, the lowest part of the resale market since May 2008, when it was 39.8%. Foreclosures hit a peak as a percentage of the market in October 2008, when they constituted 52.4% of all previously owned homes sold.

-- Alejandro Lazo