Economic uncertainty and affordability issues to subdue California home sales
LOS ANGELES (Sept. 26) – Low mortgage interest rates will support California’s housing market in 2020 but economic uncertainty and affordability issues will mute sales growth, according to a housing and economic forecast released today by the California Association of Realtors.
C.A.R.’s “2020 California Housing Market Forecast” sees a small uptick in existing single-family home sales of 0.8 percent next year to reach 393,500 units, up from the projected 2019 sales figure of 390,200. The 2019 figure is 3.1 percent lower compared with the pace of 402,800 homes sold in 2018.
The California median home price is forecast to increase 2.5 percent to $607,900 in 2020, following a projected 4.1 percent increase from last year to $593,200 in 2019.
“With interest rates expected to remain near three-year lows, buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties,” said C.A.R. President Jared Martin. “Additionally, an affordability crunch will cut into demand in some regions such as the Bay Area, where affordability is significantly below state and national levels. These factors together will subdue sales growth next year.”
CAR 2020 Housing Market Forecast Article
Core Logic says U.S. Home-Price Gains will accelerate through 2020
The Invisible Wall – Is “Housefishing” Breaking Real Estate? In the dating world, they call…
Explore this weekend’s featured open houses across the South Coast. From coastal retreats to hillside…
This is a stunning property! A 5,000-square-foot custom estate in Calabasas for the price of…
The "all-cash offer" has become a buzzword that hides two very different animals: the Private…
Half of Homes Sold in 20 Days! Another week, another strong showing for the Southern…
average 30‑year fixed rate recently hit 5.99%, matching its lowest point in more than two…