Realtors’ Study Says Home Prices Will Rise

The California Board of Realtors predicts that housing prices in California will increase again in 1989. However, it says the hike will be less than half the amount of this year’s runaway appreciation.

The trade group’s annual housing forecast predicts that prices for resale homes statewide will increase about 8%, boosting the median price to about $177,500 by the year’s end.

By comparison, the median price of a home at the end of 1988 is expected to reach $164,000, a 17.3% annual increase over 1987.