C.A.R. releases its 2012 Housing Market Forecast
California home sales
and median price are predicted to improve only slightly in 2012, as the
continuation of the tepid economic recovery, uncertainty about the future, and
funding challenges for residential mortgages are expected to keep the market
moving sideways, with little foreseeable momentum in either direction,
according to C.A.R.’s “2012 California Housing Market Forecast” released
Tuesday.
The forecast, which was presented today by C.A.R. Chief Economist Leslie
Appleton-Young during her luncheon at CALIFORNIA REALTOR® EXPO 2011, says that
California home sales next year is for a slight 1 percent increase to 496,200
units, following essentially flat sales of 491,100 homes this year compared to
the 491,500 homes sold in 2010.
The California median home price will increase 1.7 percent in 2012 to $296,000
in 2012, according to the forecast. Following a double-digit increase in
the median price in 2010, the median home price will decrease a projected 4
percent in 2011 to $291,000.
“2012 will be another transition year for the California housing market, as the
continued uncertainty about the U.S. financial system, job growth, and the
stability of the overall economy remain in the forefront for all market
participants,” said Appleton-Young. “An improvement in job growth,
consumer spending, and corresponding gains in housing are essential to a
broader recovery in the economy, but would-be buyers will remain cautious as
they weigh these myriad uncertainties against the clear opportunities presented
by today’s very affordable housing market.”
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