October 4th, 2010 9:20 PM by Uletas Greene Carter
After bottoming last year at $275,000 after two consecutive years of record-setting declines, Appleton-Young projects the median home price in California will climb 11.5 percent in 2010 to $306,500, and increase another 2 percent in 2011 to $312,500.
According California Association of Realtors, the state's housing market remains bifurcated, with the market for homes priced under $500,000 driven by sales of distressed properties. A lack of inventory of homes on the low end has constrained sales and put upward pressure on prices, with multiple offers very common.
In higher-priced areas, sales have been constrained by restricted financing options, and distressed properties are showing up in greater numbers.
"A lean supply of available homes for sale will drive prices up at the low end, but larger inventories and limited, less attractive financing will cause continued softness at the high end," said Appleton-Young.