The initial 2009 forecast for California was a price drop of 6%. The CAR has revised that forecast to a drop of 28%.
in its revised forecast, the association predicts that:
- The median house price will fall to $248,000 in 2009. In October, CAR expected the price to fall only to $358,000.
- The projected drop comes on top of a 38% price decline in 2008, when the median fell to $346,400, down from $560,300 the year before.
- House sales, however, are projected to be much better than expected back in October, with 550,000 houses sold statewide this year.
- That would be a 25% increase from 2008, when 439,800 houses sold.
- The revised sales outlook is pretty good considering that the state was down to 347,000 sales a year in 2007.
- The 550,000 sales is revised from an earlier projection of 445,000 houses sold.