Central Californian Real Estate Market to Stabilize in 2006
The Fresno County Economic Development Corporation has just released its annual forecast for the central Californian real estate market. Panelists concluded that the market is currently overheated, and expect it to settle down to more normal levels in the year to come.
“Sanity is returning,” said apartment specialist Robin Kane, predicting an end to the region’s massive real estate boom. But that doesn’t mean that one should expect a weak market in the near future. Brokers say that the overall market will remain solid in the year to come, but that conditions will begin to stabilize considerably.
Scott Leonard, president of Guarantee Real Estate, predicts an 8% dip in sales this year, after five years of steady increase. Growth that has brought the San Joaquin Valley market from 6,480 sales in 2000 to 10,224 in 2005 simply isn’t sustainable.
Leonard advises investors who are buying residential properties in the area, purely for the benefit of short-term appreciation to back away. The large number of properties currently on the market, and expected stabilization will likely affect the market in the years to come.
US Housing Market Expected to Moderate Gradually » PropertyPlex.com said,
May 4, 2006 @ 3:27 pm
[…] House prices are also expected to take a rest, and see much slower growth for the next couple of years at least, according to Matthew Slaughter of the White House’s Council of Economic Advisers. […]