Weak recovery foreseen for California

CAR projects 2% growth in 2011 sales, median price

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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.