The annual California Association of Realtors (C.A.R.) convention is underway in San Jose and yesterday the Association published their “2010 California Housing Market Forecast”.  They believe the median price in CA will rise 3.3% next year, and that the number of sales will decrease by 2.3%.

In comments with the report’s release, the President of C.A.R. stated “California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market. This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year. 2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

In our September newsletter, read about where the real estate market is now for entry level buyers, the low inventory levels, and home prices seem to be bottomed out and are headed up. Plus, compare the low interest rate trends for one year and five years.