California Association of Realtors 2017 Market Forecast

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Filed under: Market Comentary

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According the 2017 California Housing Market Forecast, California’s housing market will post a nominal increase in 2017 as supply shortages and affordability constraints hamper market activity.

The California Association of Realtors (CAR) forecasts a modest increase in existing home sales next year, up slightly from the projected 2016 sales.

CAR President Pat “Ziggy” Zicarelli explained, “Next year, California’s housing market will be driven by tight housing supplies and the lowest housing affordability in six years. The market will experience regional differences, with more affordable areas, such as the Inland Empire and Central Valley, outperforming the urban coastal centers, where high income prices and a limited availability of homes on the market will hamper sales.”

CAR Vice President and Chief Economist Leslie Appleton-Young added, “With the California economy continuing to outperform the nation, the demand for housing will remain robust even with supply and affordability constraints still very much in evidence. The net result will be California’s housing market posting a modest increase in 2017. The underlying fundamentals continue to support overall home sales growth, but headwinds, such as global economic uncertainty and deteriorating housing affordability, will temper stronger sales activity.”

In addition, the California median home price is forecast to increase 4.3% in 2017, which represents the slowest rate of price appreciation in six years.

The CAR also forecast the average for a 30-year fixed mortgage interest rates will rise only slightly in 2017, but will still remain at historically low levels.

If you have any questions about anything dealing with the mortgage industry, please feel free to give me a call.  I’d love to discuss it with you.

Source: http://www.car.org/newsstand/newsreleases/2016releases/2017housingforecast

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