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July 15, 2005
C.A.R. MID-YEAR HOUSING MARKET FORECAST: RECORD SALES IN 2005
Existing single-family home sales will reach a record 633,490 units in 2005, a 1.4 percent increase from the previous year's record pace of 624,740 units, according to C.A.R.'s mid-year housing market forecast. The median price also will hit a record $523,150 this year, increasing 16 percent from 2004's record $450,990. C.A.R. also projected that the state's Housing Affordability Index in 2005 will decline to 16 percent, compared with 20 percent last year.
"While the economic fundamentals for the state -- population, job and income growth -- have not changed since the forecast we prepared in October 2004, interest rates are expected to finish the year lower than we anticipated," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "We now expect the 30-year, fixed mortgage interest rate to be at 5.9 percent, with the one-year adjustable rate mortgage at 4.4 percent."
Posted by QiRealtyEditor at July 15, 2005 04:08 PM