2006 California Housing Market Forecast

Last week San Diego hosted the California Association of REALTORS®' Centennial Expo where real estate practitioners from all over California celebrated C.A.R.'s 100th anniversary. At the EXPO's opening luncheon the main speaker was Leslie Appleton-Young, C.A.R. Vice President and Chief Economist where she presented the 2006 Housing Market Forecast for California.
Her opening statement was that the only bubble in California's housing market is the bubble that exists all over the news during the past two years. Instead of the much talked about bubble California is in for a smooth landing during 2006. The rate of home price appreciation will moderate in 2006 following four years of steep increases, and sales will dip slightly from this year's record pace.
The median home price in California will increase 10 percent to $575,500 in 2006 compared with a projected median of $523,150 this year, while sales are projected to reach 630,610 units, falling 2 percent compared with 2005, according to the forecast.
Fixed mortgage interest rate is expected to rise to 6.4 percent next year, and the adjustable rate to hit 5.1 percent, which will make it more difficult for many families in California to be able to afford a home.
For more information on the 2006 Housing Market Forecast and how you will be affected if you plan to sell or buy a home in San Diego, contact me through my website click San Diego Real Estate Homes for Sale.