Industry NewsMarkets & Economy

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.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...