Experts Differ On Future of California Housing Market
INDUSTRY NEWS, TIPS FOR BUYERS, TIPS FOR SELLERS
January 21st, 2011
Ask an economist, educator, foreclosure expert and developer their predictions for California’s housing market and you will get a mixed bag of responses. Leslie Appleton-Young, cheif economist for the California Association of Realtors, was optimistic in her belief California home prices will edge upward 2% in the coming year. Others predict prices to remain flat and one foreclosure expert predicts a 5% decline in prices.
Experts agree it will take years for prices to reach price levels attained at the 2006 peak. Leslie believes the moderate and low end of the market have stabilized but further price erosion can be expected for the high end of the market. Location will be an important factor determining which areas will recover first. Inland areas will not see a recovery for “a long time” according to Richard Green, director of the USC Lusk Center for Real Estate. Coastal areas from La Jolla to Marin can expect prices to recover to their peak within 5 years. Jobs will be key to price recovery.
Locally, high unemployment in the Redding/ Shasta County area and the lack of equity refugees from the metro areas will hold our market down. Key industries that once thrived here are gone and not likely to return. Service, government and recreation jobs have taken a hit with the slow national economy. Efforts by government officials at all levels to cut spending may further cripple an already battered housing industry.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
NEARLY 30 YEARS LOCAL REAL ESTATE EXPERIENCE
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