A new forecast from a Ventura County economist being presented in Sacramento today says that signs of a state housing recovery may be premature.
Dr. Bill Watkins, with the California Lutheran University Center for Economic Research and Forecasting, is releasing the Center’s first quarter California and U.S. report today.
He says the year to year housing price increases we’re seeing this year are similar to what happened in 2010, when the numbers then slipped. Watkins thinks interest rates will also rise in the next two to three years, cooling the recent spurt in home sales.
However, he does note that they predicted a housing recovery was unlikely until home ownership percentages fall to around 65%, and that the figure is now approaching that range.
Watkins is presenting his report at the California Taxpayers Association annual meeting in the state capitol today.