Printer Friendly Version
Capital University News, California State University, Sacramento
December 19, 2003
Institute releases new regional housing forecast
Housing prices in the Sacramento Region will see just a slight increase next
year as demand for housing in the area declines from this year’s records,
according to the new CSUS Forecast: Housing Sector Outlook unveiled today by
the California Institute for County Government at California State University,
The forecast says the housing market will be dragged down by job losses in the
region and rising interest rates. Even so, it says that the overall housing
sector will remain a strong part of the local economy.
The forecast predicts sales of new and existing homes will drop this quarter
after a record third quarter, and that sales will remain brisk through next
It also predicts that the median price of new and existing homes will rise slightly.
The forecast says the median price of new homes, which will finish 2003 at an
annual average of about $300,000, will reach $307,000. It says the median price
of existing homes, now at an annual average of about $208,000, will reach an
average of $220,000 in 2004.
The CSUS Forecast: Housing Sector Outlook is initially expected to be produced
twice a year. Like the CSUS Forecast of the region’s job outlook, it is
based on an econometric model of the six-county Capital Region, which incorporates
data from more than two dozen separate economic variables.
Matthew Newman, the institute’s director, says the new housing outlook
grew out of the group’s CSUS Forecast of the Sacramento Region, which
comes out quarterly.
“Housing and construction employment have become important pillars of
the local economy, helping the region to outperform the rest of the state during
the recent downturn,” Newman says. “As we look ahead and prepare
our forecasts, it has become increasingly difficult to answer questions about
the overall health and direction of the economy without simultaneously understanding
the outlook for housing.”
More information is available from Matthew Newman, director of the California
Institute for County Government, at (916) 324-0796, or at the institute’s
website at www.cicg.org. Additional
media assistance is available by contacting CSUS public affairs at (916) 278-6156.
California State University, Sacramento Public Affairs
6000 J Street Sacramento, CA 95819-6026 (916) 278-6156