Business Journal: Realtors Offer Dismal Forecast
A statewide association has a dismal outlook for the housing market.
Thursday, October 11, 2007
California’s home prices and sales are expected to drop in 2008, as the housing market slowdown extends into a third year, according to the California Association of Realtors. Statewide, sales will likely fall to 334,500 homes, a 9 percent decline from this year – and 47 percent lower than the record sales reached in 2005. If the projected sales drop becomes reality, it would be the fewest transactions since 1985. Fewer home sales will likely hurt the median price, which is expected to drop next year for the first time since 1996. The Sacramento region has already experienced declining home prices, with the median price falling to $333,000 in August – about $60,000 lower than in August 2005.