Tuesday, May 12, 2009

Realtors predict another 28% fall in prices

Huh is this for real. Realtor thinking things will get worse?

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.

7 comments:

Kane said...

Wow ... for once, a realistic prediction from CAR/NAR/some association. It's about time too ... I guess they finally admitted that the rosy picture that's been on their wall ... yeah, it was painted with dookie.

dra928 said...

wtf? they're already predicting that has already happened? lol...median houses in california in Feb. 2009 is $247.

http://www.svdaily.com/realestateprices.html

The median price of an existing, single-family detached home in California during February 2009 was $247,590, a 40.8 percent decrease from the revised $418,260 median for February 2008, C.A.R. reported. The February 2009 median price fell 2.3 percent compared with January revised $253,330 median price.

JORDATO said...

Hello Golfer have you heard that fha is considering monitizing the $8,000 tax credit thru a bridge loan thru FHA used as dp and soft second at closing, do you think that will help the i.e. inventory i am hoping for further price decline looks like %100 financing to me

golfer_X said...

I have not heard about that. FHA fought like hell to get the DPA's eliminated. They know as do most lenders that the increase the chance of defaults dramatically. But Pelosi and friends at the urging of the real estate and home builders lobby are trying to get some DPA legislation passed. Normally I would say the don't have a snowballs chance in hell. But some of the things I've seen our government do lately has me wondering if they are smoking crack.

wheres my cheese said...

Tax Credit Can Be Used for Down Payment
http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument

tazman said...

Problem is they've started cranking up their 'this is a great time to buy your first home in CA' all over talk radio stations... guess this realtard didn't get the memo!

Todd said...

I keep hearing a comercial on 590 KTIE in San Bernardino from "The Real Estate Guy" or whatever he calls himself. He's selling a $299 real esate investing seminar that will tell you how to buy investment properties with zero down from the coming foreclosure wave that will "reach a record high within the next 90 days."

So it sounds like he's out there to teach people how to buy properties that they can't afford with money that they don't have. Wonderful.