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.”