p>After our review on 2010, in the end what is the projection for 2011? The economist of C.A.R is predicting a 2% rise in median price for California and same percentage increase in home resale volume. My take is that it will be a mixed bag in 2011. Depending on which segments you are in, you may find candies, dog food or rotten eggs. Low end / condo market is currently limited by availability of credits. Should banks choose to keep the current lending guideline or tighten it even
more, the low end <$300K market will stay soft. Investors can find good deals for long position. Just don’t expect immediate return. The mid market ~$500K is driven by employment rate in the Silicon Valley. While economists are cautiously optimistic about the job market, put your antenna up and pay attention to local hiring and firing. Lastly for the high end $800K or more, it’s fueled by profits from stock market and commodity market. As we have seen in 2010, there is enough money on the sideline to swing the market by 15-20% at any moment. So get your finance, documents and your house in order and be prepared to make a move at any moment. Good luck!