UCLA Anderson School Releases Real Estate Forecast

The UCLA Anderson School of Business Forcast, released on September 28, 2006, calls for flat home prices for the next 5 years, and stated that “prices, at least in California, probably won’t decline significantly anytime soon.” Although the report does not rule out a recession, it does not expect one.  Prices might decline in certain areas where new housing inventory is high and where builders may cut prices to move inventory. Several areas in the state where speculators were particularly active may also see declines, such as Fresno, Salinas, and Stockton. UCLA economist Ryan Ratcliff said, “We’re not going to see anything like the 90’s again.”