C.A.R. forecasts 14 percent sales decline, modest increase in median home price for state Midyear Housing Market Forecast presented at California REALTOR® Showcase in Sacramento LOS ANGELES (June 7) - The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today projected a 14 percent decline in single-family home sales this year, and forecast a 1.8 percent increase in the median price of a home. C.A.R. Executive Vice President Joel Singer delivered the Association's 2007 Midyear Housing Market Forecast as part of the California REALTOR® Showcase and C.A.R.'s Legislative Day activities this week in Sacramento.
The 2007 Midyear Housing Market Forecast PowerPoint presentation is available at http://www.car.org/library/media/papers/pdf/2007%20Midyear%20Forecast.pdf. Sales are expected to fall to 410,500 units in 2007, a 14 percent decline from the 477,460 pace recorded in 2006, according to the forecast. The median price of a home will reach $566,500 this year, a 1.8 percent increase from the $556,640 median for 2006. "Sales have declined in all areas of the state, but higher-end markets have experienced somewhat smaller declines," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Sales are weakest in areas that had a lot of new home building in recent years or those areas that had been popular for second home purchases. "Prices tend to be softer in those areas as well," she said. "This pattern is likely to continue throughout the rest of the year, particularly in areas that were popular among first-time home buyers, which experienced the greatest run-up in prices. Similarly, higher-end markets have seen greater price stability, with the median price of a home declining slightly, if at all. The sales mix, with slower sales in the entry and lower-end of the market and relatively stronger sales in the high end, has helped stabilize the median price." According to the C.A.R. forecast, the Central Valley region has experienced a greater decline in sales compared with the state as a whole, and a succession of year-to-year declines in the median price. This trend is likely to continue, due in part to excess inventory of new homes for sale. The San Francisco Bay Area and moderately priced to higher-priced areas of Southern California have seen a somewhat better sales picture, with small or nonexistent median price declines. These areas should continue to fare better than lower-priced inland markets in the San Bernardino and Riverside areas, according to Appleton-Young. Sales in those areas remain significantly below the record levels of the peak years, she said. Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
NAR FORECAST: TIGHTER LENDING STANDARDS WILL SLOW HOUSING RECOVERY The push for higher loan standards may slow home sales in the coming months, while median prices will remain flat, according to NAR's most recent forecast. "Tighter lending standards will dampen home sales a bit, but by less than a couple of percentage points from initial projections," said NAR Chief Economist David Lereah. Existing-home sales are projected to total 6.34 million nationwide in 2007, while new-home sales are forecasted at 904,000, down from 1.05 million in 2006. The national median existing-home price is expected to decline 0.7 percent this year to $220,300.
Changes in lending standards will lead to a healthier housing market, according to the report. "We want people to be able to stay in their homes with mortgage terms they understand and can handle," said Lereah. In California, C.A.R. is projecting existing-home sales to decrease 7 percent to 443,900 in 2007, down from 477,400 in 2006. Additionally, the median price of an existing single-family home is expected to drop 2 percent to $550,000 compared with $556,600 last year.
FASTEST-GROWING METRO AREAS CONCENTRATED IN WEST AND SOUTH All but two of the nation's 50 fastest-growing metropolitan areas between April 1, 2000, and July 1, 2006, are located in West and South regions, according to a recent report from the U.S. Census Bureau. St. George, Utah, was the fastest-growing metro area in the U.S., experiencing nearly 40 percent growth during the six-year period, according to the report. In California, nine metro areas were among the top 50 list, including Riverside-San Bernardino-Ontario (23.7 percent), Stockton (19.4 percent), Madera (18.9 percent), Bakersfield (17.9), Merced (16.7 percent), Yuba City (16.3 percent), Sacramento-Arden-Roseville (15 percent), Modesto (14.6 percent), and Visalia-Porterville (14.1 percent).
With 13 million residents, the Los Angeles metropolitan continues to be the second most populous metro area in the nation, according to the report. The Los Angeles-Long Beach-Santa Ana region gained more than 584,500 people during the six-year period between April 1, 2000, and July 1, 2006.
HOUSING STARTS DROP 38 PERCENT NATIONWIDE The seasonally adjusted annual rate for privately owned housing starts declined for the 10th consecutive month in January, falling to a rate of 1.4 million units, according to figures recently released from the U.S. Dept. of Commerce. Last month's construction pace was down 14.3 percent from December and down 37.8 percent from a year ago. Single-family starts decreased 38.9 percent from January 2006, to a rate of 1.1 million units, while starts for multifamily structures declined 34.9 percent to a rate of 276,000 units.
Builders are working to reduce their inventory levels before starting new single-family homes, according to a National Association of Home Builders (NAHB) report. "Home sales apparently stabilized late last year, but the overhang of unsold housing inventory still is quite heavy," said NAHB Chief Economist David Seiders. "Builders have been cutting back on starts of new units to bring supply and demand back into balance."
The construction pace for single-family housing units declined across the nation in December, falling 47.8 percent in the West, 45.5 percent in the Midwest, 35.1 percent in the South, and 25.7 percent in the Northeast
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ZIP Codes: 92101, 92102, 92103, 92104, 92105, 92106, 92107, 92108, 92109, 92110, 92111, 92113, 92114, 92115, 92116, 92117, 92118, 92119, 92120, 92121, 92123, 92124, 92126, 92127, 92128, 92129, 92130, 92131, 92139, 92145, 92155, 92161, 92173 Approximate Location Boundaries: San Diego is a coastal Southern California city located in the southwestern corner of the continental United States.
Location Characteristics: San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,311,162[1] people. It is the second largest city in California and the eighth largest in the United States.[2] The larger metropolitan area is the seventeenth-largest in the United States, with a population over 2.9 million. It lies just north of the Mexican border (shares border with Tijuana, Mexico), and is a home for United States Navy, United States Coast Guard and United States Marine Corps bases, many miles of beaches, and a mild Mediterranean climate. The annual mean temperature is 64.4 degrees Fahrenheit (18°C). San Diego's economy centers on tourism, trade, agriculture, ship-building, the military, biotechnology, computer science and electronics.
The University of California, San Diego and nearby research institutes on Torrey Mesa provide a base for technological innovation and there are numerous high-tech and biotech companies in the area, such as Qualcomm, Neurocrine, Illumina, and Genentech of Oceanside. Major tourists attractions include the city's beaches and bays, Balboa Park with its many museums, the San Diego Zoo, Sea World, San Diego Wild Animal Park and Old Town, the site of the original Spanish settlement.
Downtown San Diego is located on San Diego Bay. Balboa Park lies on a mesa to the northeast. It is surrounded by several dense urban communities and abruptly ends with Mission Valley to the north. Coronado and Point Loma separate San Diego Bay from the ocean. Ocean Beach is on the west side of Point Loma. Mission Beach and Pacific Beach lie between the ocean and Mission Bay, a man-made aquatic park. La Jolla, an affluent community, lies north of Pacific Beach. Mount Soledad in La Jolla offers views from northern San Diego County to Mexico.
Mountains rise to the east of the city, and beyond the mountains are desert areas. Cleveland National Forest is a half-hour drive from downtown San Diego. Numerous farms are found in the valleys northeast of the city. The city of San Diego itself has deep canyons separating its mesas, creating small pockets of natural parkland scattered throughout the city.
Military bases in or near San Diego include U.S. Navy ports, Marine Corps bases, and Coast Guard stations. San Diego is the home port of the largest naval fleet in the world, including two Navy supercarriers (the USS Nimitz and the USS Ronald Reagan), five amphibious assault ships, several Los Angeles-class submarines, and many smaller ships.
One of the Marine Corps' two Recruit Depots is located here. San Diego is also known as the "birthplace of naval aviation," although Pensacola, Florida makes a rival claim.
Four Navy vessels have been named USS San Diego in honor of the city.[3]
Marvin Collier is a California Real Estate Broker Realtor®, Accredited Buyer Representative, and Certified Residential Specialist & Loan Consultant. Need to sell your home?
Looking for your next home?
I am never personally to busy for you inquiries. . Call
Marvin Collier, ABR, CRS Broker Realtor® & Loan Professional Direct Office: (619)-548-4153 Marvin@MarvinCollier.com http://MarvinCollier.com/
Search San Diego Co for properties at http://MarvinCollier.com/ a direct link to the San Diego Co. property multiple listing service.
Visit my client reference page at www.MarvinCollier.com
About Marvin Collier ABR,CRS:
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Selected by you as your Real Estate and or Mortgage professional I instantaneously recognize the confidence you entrust to me and become your experienced professional, committed to the accomplishment of your unique real estate goals.
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