Industry NewsMarkets & Economy

California real estate market ‘struggling to gain momentum’

CAR forecast: Home prices, sales to rise slightly in 2012
Published on Sep 21, 2011

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by CareyBot

California home sales are expected to remain essentially flat this year and rise slightly in 2012, according to a housing market forecast from the California Association of Realtors.

The trade group predicted California home sales this year will stay roughly flat compared to 2010, at 491,100 units -- a relative improvement given the 10 percent drop in sales in 2010.

In 2012, CAR expects a slight 1 percent rise, to 496,200 units. CAR projects the median home price in the state will fall 4 percent this year, to $291,000, followed by a modest 1.7 percent rise in 2012, to $296,000, as the lackluster economy continues to weigh on the minds of consumers.

"It's very clear that this market is struggling to gain momentu