CAR sees home prices rising
Inman News Features
Even though the housing market has cooled in the Golden State, the California Association of Realtors is predicting record home prices in 2001.
CAR is forecasting the state's median price for a single-family home will hit $269,200 -- an 8.5 percent rise from 2000 -- as sales slip 2.7 percent in 2001, following 2000's 3 percent slide.
"The California housing market is having one of its best years on record and it looks like 2001 will continue the trend," said Richard F. Gaylord, president of CAR. "Californians are optimistic about the future of the state, and their confidence is reflected in the ongoing health of the residential real estate market."
CAR is also estimating that 521,750 existing, single-family homes will be sold this year, after 537,890 were sold in 1999. That should drop to 507,750 in 2001.
The median price in 2000 is projected to end up being $248,100. In 1999, the median sale price was $221,520.
CAR also predicts 30-year fixed-mortgage rates will average 8.5 percent in 2001, up from 8.2 percent for 2000, while one-year adjustable mortgage rates are projected to increase to 7.8 percent from 7.5 percent.
Residential housing permits should hit 148,910 in 2001, down 3 percent from 2000's projected total of 153,000. |
