Industry News

Home-price gains to ease in 2006

Forecast calls for lower sales rate

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The rate of home-price appreciation will moderate next year following four years of steep increases, while sales in 2006 will decline slightly from this year's record pace, according to the California Association of Realtors' "2006 Housing Market Forecast" released today. The forecast was presented during the association Centennial Realtor Expo at the San Diego Convention Center. The median-home price in California will increase 10 percent to $575,500 in 2006 compared with a projected median of $523,150 this year, while sales for 2006 are projected to reach 630,610 units, falling 2 percent compared to 2005, the association announced today. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state, according to association economists. California typically gains nearly 250,000 new households yet will build about 200,000 new housing units thi...