CoreLogic is forecasting a slow down in housing prices. They expect home prices to rise in most neighborhoods, albeit at a more modest pace than in recent years. Price appreciation is expected to average 2.5% per year during the next three years, compared with 4.8% per year during the prior decade. They expect inventories to increase and mortgage rates to stay low. Check out the full story here.
California Sets Record for Median Home Price
Low interest rates and lackluster inventories in California set the record for a new median home price record at $712,430. There has been much talk of the exodus triggered by California’s inflated cost of living, which has seen Californians trickle outward to states with a lower cost of living — states like Texas, Nevada, and Arizona — for more than a decade. But while the state did lose 650,000 residents last year, “We have 39 million people here,” Mr. Lundquist said. “It’s a drop in the bucket compared to how many people are here, and builders haven’t been able to build fast enough to satisfy our population. Read more here…
Local Home Prices Up
Local home prices, see chart below, continue to show strength. Inventory is low and buyers are still quite plentiful. I expect that at some point that will start to turn with inventories increasing and the buyer pool decreasing, but not sure if that is still two years out.