CAR: State's Existing Home Sales Rising

Existing home sales in California are on the upswing for 2008 as a whole, a trend that will continue into next year, the Golden State's Realtors are predicting. But with the "ongoing pressure from distressed sales," the 175,000-member California Association of Realtors believes prices will continue to fall, though by not nearly as much as they have this year. Leslie Appleton-Young, CAR's chief economist, said sales should post a 12% gain in 2008, and a 12.5% gain on top of that in 2009. But next year's pickup won't be evident until the spring, which is the next big homebuying season. "The next couple of quarters will be marked by seasonal decreases in activity," Ms. Appleton-Young said. However, at 445,000 units, next year's total sales will be almost 200,000 units greater than the 265,000 sales registered in 2007. Prices are another story, though. The state's median is expected to dive 32.7% this year, from $558,100 to $381,000. But the descent will slow to only a 6% decline in 2009, to $358,000, the group is projecting. CAR President William E. Brown said he expects sales of distressed properties to peak in early 2009. The sale of foreclosed properties "directly impacts the time frame for stabilization," he said.