Forecast: Calif. home prices to rise 23%

March 25, 2011:

The real estate forecast by Beacon Economics calls for average California home gains of 0.6% this year; 3.2% next year; 5.4% in 2013; 6.7% in 2014; and 7.8% in 2015.

All told, Beacon is basically projecting that California home prices will jump 23% in five years ($57,800) – from a typical selling price of $256,136 in 2010 to $323,368 in 2015. Depending on one’s view, that projected 2015 pricing would be equal to the highest since 2008, back at early 2004 levels – or still 38% off the 2007 peak.

Jordan Levine, research manager at Beacon Economics, says the optimism is driven by “rising employment and incomes, which we project to grow by between 4% and 6% on the income side and 2% to 3% on the employment side.”

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