Real Estate Watch – Dan Conway
Season’s Greetings and a Strong Real Estate Outlook for 2016!
California’s housing market is expected to improve in 2016, but a shortage of available inventory and continuing high costs are expected to limit the improvement, according to a report released Thursday by the California Association of Realtors (CAR). 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 (which is what many have predicted) could price some buyers out of the market. So while there is room for continued growth in most housing markets across California, we probably shouldn’t expect the kinds of gains seen over the last couple of years.
According to CAR’s 2016 California Housing Market Forecast, existing home sales are expected to rise in 2016 by 6.3% over 2015’s expected total. The state’s rising prices are predicted to hold back home sales slightly. The California median home price is projected to increase 3.2% to $491,300 in 2016, following a projected 6.5% increase in 2015 to $476,300. Despite those increasing prices, 2016 is still estimated to have the slowest rate of price appreciation in five years. The average for 30-year fixed mortgage interest rates will rise only slightly to 4.5 percent but still remain at historically low levels, CAR said.
“The foundation for California’s housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth,” said CAR Vice President and Chief Economist Leslie Appleton-Young. “However, the global economic slowdown, financial market volatility, and the anticipation of higher interest rates are some of the challenges that may have an adverse impact on the market’s momentum next year.”
For a valued home estimate reach out to the experts at Dan Conway & Associates for our 50+ years of combined Real Estate expertise. Visit us at 3860 Valley Centre Dr. Suite 409, San Diego, CA 92130 in the Piazza Carmel Shopping Center or online at www.DanConwayRealEstate.com.
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3860 Valley Center Dr. Suite 409, San Diego, CA 92130