Thursday, October 8, 2009
by Broderick Perkins
© 2008 DeadlineNews.Com
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Deadline Newsroom - California's home prices remain a long way from living up to the state's nickname, but the Golden State's home prices are set to rebound in 2010.
The California Association of Realtors said the median single family home price in California will rise 3.3 percent to $280,000 in 2010, up from the projected median of $271,000 this year.
Sales for 2010 are projected to decline 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.
During the current boom-bust cycle, California's median price for single family homes peaked in 2007 at $560,300 and sales rose to 625,000 units in 2005.
The forecast was released at the association's "2010 California Realtor Expo 2009" running from October 6 to 8 at the San Jose Convention Center in San Jose, CA.
"2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation," said CAR President James Liptak.
California's housing market has been one of the nation's hardest hit by foreclosures and falling home prices.
However, those conditions boosted affordability and put sales back on a slow but steady recovery track for portions of the market.
“2009 marked a unique opportunity for first-time home buyers," Liptak said.
"Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide," he added.
Distressed properties will account for nearly one in three sales next year which means prices will continue to fall in California next year, before leveling off by summer and turning up the second half of the year, according to CAR's forecast.
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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.
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