Industry NewsMarkets & Economy

Weak recovery foreseen for California

CAR projects 2% growth in 2011 sales, median price
Published on Oct 4, 2010

The California Association of Realtors is projecting modest increases in home sales and median prices next year, with the weaker-than-expected economic recovery not producing enough job growth to fuel a more dramatic rebound.CAR Chief Economist Leslie Appleton-Young expects resales of single-family homes, which bottomed in 2007 at 346,900, to grow by 2 percent next year, reaching the 502,000 mark. After registering double-digit growth in 2008 and 2009, home sales will probably end up shrinking by 10 percent this year, to 492,000, CAR projects.After bottoming last year at $275,000 after two consecutive years of record-setting declines, Appleton-Young projects 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.CAR said the state's housing market remains bifurcated, with the market for homes priced under $500,000 driven by sales of distressed properties. A lack of inventory of homes on the low end has constra...

Comments