October 12, 2018 Comments (0) Views: 1109 California News, Top California

California Housing Market Predicted to Weaken, First Sales Decline in 4 Years

A combination of high home prices and eroding affordability is expected to cut into housing demand and contribute to a weaker housing market in 2019, and 2018 home sales will register lower for the first time in four years, according to California Association of Realtors’ (C.A.R.) housing and economic forecast.

C.A.R.’s 2019 California Housing Market Forecast predicts a modest decline in existing single-family home sales of 3.3% next year to reach 396,800 units, down from the projected 2018 sales figure of 410,460. The 2018 figure is 3.2% 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.”

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