Housing Market Forecast released today. Sales of existing, single-family homes in California are expected to decline 8 percent in 1999, following a projected 10.7 percent rise this year. A total of 615,000 existing, single-family home sales are projected for this year in California, up 10.7 percent from 555,380 sales in 1997. Sales are expected to decline 8 percent to 565,800 in 1999, according to C.A.R.'s forecast. Inventory levels and median time on the market are at an all time historical low.
Interest rates remain at or near historic lows as well.
When preparing the forecast for next year's housing market, C.A.R. economists analyzed key data and indicators for the U.S. and California economies. Condominium sales in California are expected to decline 4 percent in 1999, following a projected 25 percent rise this year compared with 1997. Fixed mortgage interest rates are expected to average 6.5 percent in 1999, slightly lower than the 6.8 percent average projected for all of 1998. Adjustable mortgage interest rates are expected to remain unchanged, averaging 5.5 percent next year. Single-family housing permits are expected to reach 110,000 next year in California, up 15.8 percent from a projection of 95,000 in 1998.