“What is happening to the real estate market?” This is the burning question on every homeowner or would-be-homeowner’s mind. California just got an answer. The California Association of Realtor’s just released its 2010 California Housing Market Forecast. The new report sounds cautiously optimistic:
“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” said C.A.R. president James Liptak. “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.”
Consistent with our last Market Update for East Bay Real Estate, Liptak adds that our California housing market continues to be “a tale of two markets.”
“The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed.
Leslie Appleton-Young, C.A.R. Vice President and Chief Economist, also shares her Market Forecast power point presentation developed for the California Realtor Expo.
“The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government,” Appleton-Young said.