California Association of Realtors® releases it's forecast for the 2005 real estate market!
With everyone wondering what will happen in 2005, the California Association of Realtors® (C.A.R.) has now made their predictions for next year's real estate market. According to C.A.R., "The median price of a single-family home in California will again increase by double-digits next year, reaching $522,930, while sales will decrease slightly from this year's pace to the second best year on record in 2005".
And what about their projections for interest rates?? Read what C.A.R. President Ann Pettijohn says:
"Homebuyers next year will face slightly higher mortgage interest rates, approaching 7 percent by year's end, which will make it more difficult for many families in California to be able to afford a home. Coupled with rising home prices, affordability in California will fall to an all-time annual low of 16 percent next year."
Which areas of the state will fare well?? According to C.A.R. Vice President and Chief Economist Leslie Appleton-Young:
"Regionally, the areas with the greatest potential for home sales growth are the inland regions of the state -- the Central Valley and the Inland Empire region in Southern California, which have experienced significant population gains in recent years as well as robust new home-building activity."
To read the press release from the California Association of Realtors, go here.