Drop in Home Sales Predicted: Sales of...

Drop in Home Sales Predicted: Sales of existing family homes in California are expected to drop 9% next year, according to a forecast released by the California Assn. of Realtors, as interest rates rise modestly and more buyers are forced out of the state’s housing market by higher prices. About 477,750 existing homes will be sold next year, the trade group said, compared to an estimated 525,000 this year. Home prices across the state are expected to rise 9%, compared to a 17.5% increase expected this year and an 18.4% rise in 1988. Meanwhile, national sales of existing homes rose 3.3% in August, the highest level in six months, the National Assn. of Realtors said. Existing single-family homes sold at a seasonally adjusted annual rate of 3.44 million units last month, up from July’s revised 3.33 million units, the group reported.