Home Sales in State to Rise, Realtors Say : Housing: The report says the rebound next year will be caused by a stronger economy, new consumer confidence and lower mortgage rates.

The three-year slump in California’s housing market should end next year, with some resales across the state rising 4% and prices keeping up with inflation, according to a projection released Monday by the California Assn. of Realtors.

“We’re not going to see the kind of double-digit price appreciation that we had back in 1986 or ‘87, but ’92 is going to be a better year than ’91 has been,” said Leslie Appleton-Young, the economist who compiled the forecast.

The trade group, which represents 135,000 salespeople statewide, said the rebound will be caused by a strengthening economy, renewed consumer confidence and lower mortgage interest rates.

“Mortgage rates have been dropping for more than a year, and they should drop a little farther before they head up again,” Appleton-Young said.

Values in the pricey coastal communities should rise fastest in the first half of the year, she said, in part because those are the areas that have suffered some of the steepest sales and price declines since the real estate market headed south in 1988.

But less-expensive inland areas, such as Riverside and San Bernardino counties, should pick up steam in the second half of 1992 as more city-dwellers are finally able to sell their homes and move to less-congested communities.

Appleton-Young said the median price of a single-family home in California should rise 4% next year, to $206,000. Sales are also expected to rise 4%, to 437,000 units from 420,000 this year.

The price of a typical condominium should rise 3%, to $150,000.

“The condo market should do pretty well, especially in high-priced markets like Los Angeles, because condos are an affordable alternative to single-family homes,” said Mack Powell, a real estate broker and president of the trade group.