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Douglas Zeller's Blog

By Douglas Zeller | Broker in El Dorado County, CA

California Housing Market Forecast


Small increases projected in both home sales and median home price.

 

A weaker-than-expected economic recovery will result in a projected decline in California home sales for 2010, although home sales are expected to edge up slightly in 2011, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) “2011 California Housing Market Forecast” released 10/04/10. 

 

California home sales for 2010 are forecast to decline 10 percent from the 2009 sales figure of 546,500 homes sold.  Sales in 2011 are projected to increase a lackluster 2 percent to 502,000 units compared with 492,000 units (projected) in 2010.  After two consecutive years of record-setting price declines, the median home price in California will climb 11.5 percent in 2010 to $306,500 and increase another 2 percent in 2011 to $312,500, according to the forecast.

 

“California’s housing market will see small increases in both home sales and the median price in 2011 as the housing market and general economy struggle to find their sea legs,” said C.A.R. President Steve Goddard.  “The minor improvement in the housing market next year will be driven by the slow pace of recovery in the economy and modest job growth.  Distressed properties will figure prominently in the market next year, but we also expect to see discretionary sellers play a larger role,” he said.

 

Full article at:  http://www.car.org/newsstand/newsreleases/2011forecast 

 

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