Housing prices projected to increase in 2013

homesale2.jpgSo says the California Association of Realtors as part of its forecast for next year. The median price is expected to reach $335,000, up 5.7 percent from 2012. That would be the highest median since prices peaked at $560,300 in 2007. It's worth noting that the CAR, like other housing economists, have been way off in their price projections. These days, it's virtually impossible to go out beyond a few months and expect anything more than a guesstimate. Check this out:

State median prices
2006 (forecast) +10.0% (actual) 6.5%
2007 (forecast) -2.0% (actual) +0.7%
2008 (forecast) -4.0% (actual) -37.8%
2009 (forecast) -6.0% (actual) -21.1%
2010 (forecast) +3.3% (actual) +10.9%
2011 (forecast) +2.0% (actual) -6.2%
2012 (forecast) +1.7% (actual) +10.9%

From the OC Register:

If next year's forecast is accurate, house sales will be up 53 percent from California's sales bottom in 2007, but still will be 15 percent below the market peak of 625,000 transactions in 2005. The median price would be up 22 percent from the price bottom of $275,000 in 2009. But the median price would remain 40 percent below 2007's price peak. The CAR forecast has had a spotty track record, with the median price forecast coming within five percentage points of actual prices just once in the past seven years.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
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