California Association of Realtors 2011 Market Forecast!

I just returned from a CAR (California Association of Realtors) convention yesterday and the Chieft Economist, Leslie Appleton-Young, gave a presentation on current market statistics and 2011 real estate forecasts. Below is a synopsis of the key real estate market indicators. Overall, she said the economy is officially out of a recession (meaning the economy is no longer shrinking), but the recover will be slow and difficult. In relation to real estate opportunities, the homes today are more affordable today since 1939 due to interest rates and home prices. It's a great time to buy a home! Let me know if you have any questions relating to your real estate needs. thanks, Crista :)


California REALTORS® forecast slight rise in 2011 home sales

Sales of existing, single-family homes are expected to decline slightly in 2010 compared with 2009, but are forecast to rise slightly in 2011, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2011 California Housing Market Forecast.” Meanwhile, the median price of homes in California is expected to increase both in 2010 and 2011 compared with the year prior.

MAKING SENSE OF THE STORY FOR CONSUMERS

Following near record-high levels of year-over-year sales increases, home sales are expected to decline 10 percent in 2010 compared with 2009, according to the C.A.R. forecast. C.A.R.’s economists predict home sales will increase 2 percent in 2011 compared with 2010.

Home sales are expected to end the year at 492,000 units, compared with 546,500 in 2009. C.A.R. forecasts sales will come in at 502,000 units in 2011.

The median sales price is forecast to increase 11.5 percent to $306,500 for 2010, and an additional 2 percent in 2011 to $312,500, C.A.R. announced.

According to C.A.R. Chief Economist Leslie Appleton-Young, the Association expects a net jobs increase of approximately 1.4 million jobs in California for 2011 and an improvement in unemployment figures, which many believe are key to the economic recovery.

Ms. Appleton-Young also noted that a lean supply of available homes for sale will drive up prices at the low end ($500,000 and less), but larger inventories and limited, less-attractive financing will cause continued softness at the high end of the market ($1 million and more).