C.A.R. forecasts 14 percent sales decline, modest increase in median home price for state

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today projected a 14 percent decline in single-family home sales this year, and forecast a 1.8 percent increase in the median price of a home. C.A.R. Executive Vice President Joel Singer delivered the Association’s 2007 Midyear Housing Market Forecast as part of the California REALTOR® Showcase and C.A.R.’s Legislative Day activities this week in Sacramento.

Sales are expected to fall to 410,500 units in 2007, a 14 percent decline from the 477,460 pace recorded in 2006, according to the forecast. The median price of a home will reach $566,500 this year, a 1.8 percent increase from the $556,640 median for 2006.

“Sales have declined in all areas of the state, but higher-end markets have experienced somewhat smaller declines,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Sales are weakest in areas that had a lot of new home building in recent years or those areas that had been popular for second home purchases. Read More >>