Things are looking bright for the California housing market. After some uncertainty in the beginning of the year and expectations of a slow 2019, several major players in real estate have revised their forecasts. We are now hearing that, at least in terms of home-price appreciation, California could outperform the nation into 2020.
In a February report, the Zillow research team said, “California home values have gone up 4.0% over the past year and Zillow predicts they will rise 7.3% within the next year.”
How does that compare to the rest of the country? Zillow’s 12-month outlook for the nation as a whole was only 6.6%.
And Zillow isn’t the only company making these predictions. CAR expects the average home price to increase 3.1% to $593,450 in 2019, following a projected 7% over 2018 to $575,800.
A report from Mercury News said – California’s economy grew 4.7% in the 12 months ending in February compared to the national rate of 2.8%. It could grow at a 2.55% pace in the next six months, faster than the national 1.59.
Why do we continue to see an appreciation of home values during a slow housing market? These positive forecasts are largely due to inventory shortages. The demand for housing is greater than the housing supply. Across the nation, especially in California, there are not enough homes for all of the people who want to buy property. The increased competition among buyers drives the cost of housing up.
How much longer will home prices continue to rise? It’s very hard to predict an exact time because market changes can happen very suddenly. That’s why you want to manage your own risk carefully and proactively. It’s a good idea to regularly check home values and compare your best living options.
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Thank you to www.homebuyinginstitute.com for a lot of this great information.