The California Association of Realtors (CAR) issued their September home sales report today. The findings represent nothing surprising. September versus September a year ago showed a median price change of +1.8% statewide and -3% in San Diego County. Meanwhile, the number of homes sold showed an annual decline of 31.7% both state and countywide. The slower market means that the statewide unsold inventory stands at over 7 months compare to 3.2 months one year ago.
We knew this, we have seen it in the local numbers and we have felt it in our bones. Now what about the future? CAR’s housing forecast for 2007 predicts statewide average price declines of 2% and a 7% decline in number of sales, but not all regions are created equal:
“Looking to 2007, we expect that some regions of the state, including the Central Valley, San Diego and Riverside/San Bernardino regions, will experience sales declines greater than the state as a whole,” she said. “That also holds true for several second-home markets, including the desert areas of Southern California and the Wine Country.”
Define greater? They didn’t, but also from CAR:
“Although the 2007 sales decline is not expected to be as steep as what we experienced this year, the psychology of the market — matching the differing expectations of sellers and buyers — will continue to be a factor as REALTORS® help consumers navigate their way through a changing market.
Now that is an understatement!