In a presentation at the California Realtor Expo 2009, consumers, Realtors and the real estate industry
predicted what the real estate market is going to look like for the coming year.
The median home price is expected to rise to $280,000 compared to $271,000 this year - a 3.3% rise in value. At the same time, the actual number of homes selling in the coming year is expected to change from 540,000 in 2009 to 527,500 in 2010 - a 2.3% drop. While California Realtors will be selling fewer homes, the selling price of those homes will rise.
California is going to establish a "new normal", according to C.A.R President, James Liptak. This will likely translate to continuing sales of distressed low end properties and will include moderate home price appreciation.
California real estate is experiencing a dual market. With first-time buyer tax credits and programs as well as a plentiful supply of investors, there is actually a shortage of low-end properties. The reverse of this is true in the upper-end market where sellers are feeling the pinch of lenders anxiety regarding jumbo or non-conforming loans and buyers insecurity over the future value of these properties. There is concern that if discretionary buyers do not return to the market soon, it could affect the second half of 2010.
The "wild cards" regarding the 2010 market, according to C.A.R.'s Chief Economist, Leslie Appleton-Young are the release and number of foreclosures, loan resets, the job market and the California budget crisis...and the ongoing actions of the federal government.
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