California Home Sales Continue to Rise While Production Drops
According to the California Association of Realtors, sales of existing homes for the second quarter of 1996 rose 31.2% from the same period last year. The increase represents the largest quarterly sales increase in 10 years. Further, the median sales price of homes increased 3% in the second quarter over the first quarter, bringing the median cost of a home to $180,070.
Conversely, a new forecast released this month by the Construction Industry Research Board, predicts an 8% drop from the 106,000-unit estimate issued earlier this year, and a 2% drop from the 99,500 estimate released just last month. If the new estimate is accurate at year-end, 1996 will mark the fifth year in a row the industry has failed to top the 100,000 mark.

Volume 3, Bulletin 32 -- September 12, 1996