C.A.R.’s “2019 California Housing Market Forecast” sees a modest decline in existing single-family home sales of 3.3 percent next year to reach 396,800 units, down from the projected 2018 sales figure of 410,460. The 2018 figure is 3.2 percent lower compared with the 424,100 pace of homes sold in 2017.
“While home prices are predicted to temper next year, interest rates will likely rise and compound housing affordability issues,” said C.A.R. President Steve White. “Would-be buyers who are concerned that home prices may have peaked will wait on the sidelines until they have more clarity on where the housing market is headed. This could hold back housing demand and hamper home sales in 2019.”
The average for 30-year, fixed mortgage interest rates will rise to 5.2 percent in 2019, up from 4.7 percent in 2018 and 4.0 percent in 2017, but will still remain low by historical standards.
The California median home price is forecast to increase 3.1 percent to $593,450 in 2019, following a projected 7.0 percent increase in 2018 to $575,800.
“The surge in home prices over the past few years due to the housing supply shortage has finally taken a toll on the market,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Despite an improvement in supply conditions, there is a high level of uncertainty about the direction of the market that is affecting home buying decisions. This psychological effect is creating a mismatch in price expectations between buyers and sellers and will limit price growth in the upcoming year.”
Read the full report HERE
I get this question quite a lot. The 2018 real estate market is starting off on a busy foot! Great News and exciting times!
I’m happy to say our office is bustling with business! Buyers and Sellers are keeping our phones ringing. We have 35 listings, 9 sales pending and more listings coming. We are seeing primary home buyers, vacation home buyers, move up buyers and retirees all looking for their perfect place. From the lower elevations up to snow country Calaveras County is really a vibrant place to be!
Property values are back up to 80%-90% of 2007 values. With inventory being on the low side in certain communities, sellers have a great opportunity to get their properties sold. I’ve been working with buyers looking for properties with specific needs for several months. We will find what they need, it’s just a matter of time!
Butte Fire victims are seeing the light at the end of the tunnel. Either with selling their burned property or buying replacement property or rebuilding. Progress toward a normal life again! This is really great news for these people.
I’d love to help you find what you are looking for or help you sell your home to the perfect buyers. Give me a call, I’d love to chat with you!