Home sales are expected to rise 1.3% in 2013, according to estimates released this week by the California Association of Realtors.
If the prediction becomes a reality, 2013 will mark the third consecutive year of home sales increase in the state following the housing bubble and burst that sent much of California’s home market reeling.
Sales are expected to rise to 530,000 units in 2013, up from a projected 523,300 homes sold in 2012.
“The market has improved moderately over the past year, and we expect that to continue into 2013,” said C.A.R. President LeFrancis Arnold. “Sales would be even higher if inventory were less constrained in REO-dominated markets, particularly in the Central Valley and Inland Empire, where there is an extreme shortage of available homes. Sales will be stronger in higher-priced areas, where there are more equity properties and a somewhat greater availability of homes for sale.”
Based on CAR’s analysis, the increase would follow a 5.1% rise in 2012 over 2011 sales. However, the estimates are based on certain assumptions including recovery of the economy overall.
“The wildcards for 2013 include federal, monetary and housing policies, state and local government finances, housing supply, and the actions of underwater homeowners – not to mention the strength of the overall economic recovery,” said Vice President and Chief Economist Leslie Appleton-Young.
Written by Elizabeth Ecker