There is more good news in the California housing market, as the California Association of Realtors (CAR) announced that it expects home sales to increase for the third consecutive year.
CAR forecasts home sales rising 1.3% in 2013 to 530,000 units from the projected 2012 sales figure of 523,300 homes sold. Existing single-family sales in 2012 is projected to grow 5.1% from the 497,900 homes sold in 2011.
“Sales would be even higher if inventory were less constrained in REO-dominated markets, particularly in the Central Valley and Inland Empire, where there is an extreme shortage of available homes,” CAR President LeFrancis Arnold says. “Sales will be stronger in higher-priced areas, where there are more equity properties and a somewhat greater availability of homes for sale.”
Pending home sales in California increased in August from July even as inventory levels in the sales pipeline declined over year-ago levels.
CAR predicts the statewide median home price will increase a 5.7% to $335,000 in 2013 (see chart below). California median home price will climb 10.9% in 2012 to $317,000 after falling last year.
This is another step in the right direction as the California housing market, one of the hardest hit, rebounds just a bit more.