In October 2007, California Association of Realtors (CAR), published a forecast for California’s 2008 housing market.
In this publication CAR predicts that the median home price in California will decline 4 percent to 
$553,000 in 2008 compared with a projected median of $576,000 this year, while sales for 2008 are projected to decrease 9 percent to 334,500 units, compared with 367,500 units (projected) in 2007.
“Tighter credit standards, affordability concerns, and a continued standoff between buyers and sellers will contribute to continued weakness in the market going into next year,” said C.A.R. President Colleen Badagliacco. “Now is not the time for homeowners to ‘test the waters’ – only serious sellers should put their homes on the market in what will continue to be a challenging sales environment.”
“By price-range, the highest-priced markets – those with medians over $1 million — will show less stress,” she said. “The lower-priced markets will continue to face fallout from the subprime crisis, tighter underwriting standards, and competition from new home developments where price-cutting has been even more severe.”
So the troubled news for 2008 is directed towards sellers. Although further price drops in California’s Housing market has been 
predicted for this year, the decrease in the number of home sales seems more significant.
As I tell most of my buyers if you see a house that is within your budget, this is the time to jump in and take advantage of the slow market. We will never know when the market has hit its bottom until we are moving towards a different market again.
And remember these are all just predictions and even though they are based on thorough studies, no one can absolutely know or predict the future.
I wish all you home sellers and home buyers the best of luck in 2008, and if you need any advice or assistance, remember I am just a phone call away.
