Real Estate Watch – Dan Conway
Real Estate Forecast for 2016
Real estate soared in 2015 and the prediction for 2016 is bright. The general consensus among housing experts is that home prices in the U.S. will continue rising in 2016, but at a slower pace than 2015. The California Association of Realtors (CAR) issued a forecast and outlook for the California real estate market in 2016. The Realtor group expects home prices to continue rising through the end of this year and into next. With that being said, house values could rise at a more moderate pace next year compared to the gains we’ve seen over the last couple of years.
The California Association of Realtors (CAR) expects house values in California to continue rising next year. Home prices will likely grow steadily this year and next, but next year’s gains could be smaller than what we’ve seen in recent years. This doesn’t mean the California housing market is becoming “sluggish.” Far from it. Housing demands are still high in most areas across the state. It merely suggests a return to normalcy. The double-digit price increases of 2013 and 2014 were the exception resulting from the housing collapse of a few years earlier. Home prices had a long way to climb in those days, and they rose quickly.
Most California real estate market predictions for 2016 call for continued but more modest home-price gains. Low mortgage rates should continue to lure buyers into the market between now and the end of this year. But a gradual rise in interest rates and home prices could price some buyers out of the market. So, while there is room for continued growth in most markets across California, we probably shouldn’t expect the kinds of gains seen over the last couple of years.
Dan Conway & Associates are celebrating their one year anniversary with Pacific Sotheby’s International Realty. Stop by their office at the Piazza Carmel Shopping Center next to Vons for all your real estate needs.
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3860 Valley Center Dr. Suite 409, San Diego, CA 92130