Forecast: Rain/Shine - Prices Up/Down

As we all know, every day can't be sunny and bright. By the same token, every day can't be rainy. The California Association of Realtors understands this as much as a weather forcaster understands the weather. In a recent C.A.R. article, according to National Association of Realtors most recent forecast "Lower levels of home-building activity throughout the nation will help existing home sales improve later this year and into 2008. Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," said NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, home builders will limit new construction well into 2008."

"This should help the overall inventory level to move steadily into a more balanced state." Existing-home sales are projected to total 6.11 million in 2007 and 6.37 million in 2008, down from last year's total of 6.48 million.According to the report, prices also are expected to pick up in 2008 as inventory levels decrease. The median price of an existing single-family home is expected to drop 1.4 percent to $218,800 this year but increase 1.8 percent to $222,700 in 2008.

According to the report, prices also are expected to pick up in 2008 as inventory levels decrease. The median price of an existing single-family home is expected to drop 1.4 percent to $218,800 this year but increase 1.8 percent to $222,700 in 2008. You can read this entire article at: http://www.realtor.org/press_room/news_releases/2007/hef_july07_housing_prices_recover.html

In the same article, CAR reports the following facts:

Calif. median home price - May 07: $591,180 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region May 07:Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region May 07: High Desert $313,550 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - First Quarter 07:25 percent (Source: C.A.R.)

Mortgage rates - week ending 7/5:
30-yr. fixed: 6.63%; Fees/points: 0.4%
15-yr. fixed: 6.3%; Fees/points: 0.4%
1-yr. adjustable: 5.71%; Fees/points: 0.4%
(Source: Freddie Mac)