According to the California Assn. of Realtors, “The median price of an existing California home is expected to decline 4% to $553,000 in 2008″ and sales are expected to plummet 24% this year. 20% of home sales are predicted to involve foreclosure or distressed sale. Real estate agent Martha Franco:
But she warned that even higher-priced markets, including Los Angeles, Orange County and the San Francisco Bay Area, where prices continue to appreciate and sales have been more robust, would start to show signs of stress, but to a lesser extent.
“Higher-priced regions of the state will react more to affordability constraints,” she said.
The last time existing California home prices fell was in 1996, when the median price declined 0.5%, according to the Realtors’ calculations. In 2003, 2004 and 2005, home prices rose more than 16% year over year.
Full article at the LATimes