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C.A.R.’s 2010 Housing Market Forecast released


According to the California Association of Realtors Media release last week “The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s “2010 California Housing Market Forecast,” presented at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.”

In other words, demand is projected to go down yet prices are expected to rise. I don’t believe this is true especially in light of the record numbers of loans in the foreclosure pipeline has never been greater. According to CA industry foreclosure analyst Mark Hanson; loans in the foreclosure pipeline — post NOD and NTS have never been greater. “This all is future housing market supply that must be considered.” See Mark’s full report

What I do think is the California market will be flooded with distressed homes in the coming months and supply will greatly increase. Contrary to C.A.R.’s 2010 Housing Market Forecast, I also believe prices will drop rather than increase.

What to do:

First off, be prepared to purchase when a great deal comes your way. Secondly, do not pay top dollar for a home when comparable prices are thousands of dollars less. And lastly, use the upcoming foreclosure wave to find the home that best meets your needs.

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