California Home Sales Forecast

By Marc Stromberg · January 8, 2008

According to Alan Nevin, chief economist for the state’s new home building association, you can count on a modest recovery in California’s new home market in 2008.

Nevin predicts 2008 sales will reach 80,000 units or 10,000 more new home sales than 2007. Condo sales are expected to increase to 47,000 unit or 3000 more units than 2007.

What does this all mean to California home buyers and sellers in Pleasanton, Dublin, Livermore and San Ramon? It means increased sales in the re-sale market as well.

What’s fueling the California comeback?

California’s population growth is expected to continue, along with shrinking inventory and rejuvenated loan programs. Higher FHA limits once thought dead will be increase later this year making financing available for more buyers.

There are some real estate issues that California must address such as more affordable housing. California’s growth projections indicates a need for 240,000 new units per year with real numbers expected to be around 128,000 units.

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