California home sales next year will rise just 1 percent and median prices will climb less than 2 percent, the state’s Association of Realtors predicted Tuesday.
The group’s economists predict the housing market will be held back by a weak economic recovery, by the difficulty of obtaining loans and by uncertainty about the future.
“2012 will be another transition year for the California housing market, as the continued uncertainty about the U.S. financial system, job growth, and the stability of the overall economy remain in the forefront for all market participants,” said chief economist Leslie Appleton-Young. “An improvement in job growth, consumer spending, and corresponding gains in housing are essential to a broader recovery in the economy, but would-be buyers will remain cautious as they weigh these myriad uncertainties against the clear opportunities presented by today’s very affordable housing market.”
Home sales next year are forecast to rise to 496,200 units, compared to an estimated 491,100 homes sold this year and 491,500 homes sold in 2010.
The median price is projected to rise to $296,000 in 2012. That compares with an estimated $291,000 this year and $303,00 in 2010.
— Robert Digitale