CAR: Modest price, sales gains expected in 2017
By Ron Trujilloemail@example.com
Affordability and a critical shortage of housing will continue in 2017, leading to modest price and sales gains, according the statewide Realtors association.
The Golden State’s sales activity will increase a paltry 1.4% in 2017, compared to the previous year. Home prices will rise 4.3% to $526,600, possibly the lowest appreciation in six years, according to the California Association of Realtors.
Affordability will remain a major concern for homebuyers – or those looking to purchase – with only one of three families able to buy in the third quarter, according to CAR.
“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,” says Leslie Appleton-Young, vice president and chief economist for CAR. “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.”
The Bay Area is the only market with an expected sales drop in 2017, at 5.6%. All three regions – Bay Area, Central Valley and Southern California – are expected to have modest price gains this year.
Downtown Los Angeles photo courtesy of artist Kevin Stanchield via @Flickr.