Realtors group sees dip in Calif. home sales next year, but rising prices

Forecast: Calif. home sales to slow in ‘10

LOS ANGELES — The California Association of Realtors is forecasting sales of single-family homes will dip slightly and prices will rise modestly next year.

The trade association issued its 2010 housing market forecast on Wednesday, which calls for sales to decrease 2.3 percent from this year to 527,000.

The group projects the statewide median price will hit $280,000, up 3.3 percent from the projected 2009 median of $271,000.

California home sales bottomed in late 2007 at 346,900 units, but have turned around since then, fueled largely by sales of foreclosed homes.

The association’s chief economist says she the expiration of a homebuyer tax credit this November and job losses could dull sales somewhat in 2010.