Here’s the good news: the California housing market is expected to improve in 2016. Here’s the other news (notice I didn’t say bad news because there really isn’t any bad news regarding the housing market in 2016): a shortage of available inventory and continuing high costs are expected to limit the improvement. The news comes from a new report released Thursday by the California Association of Realtors (CAR).
CAR’s 2016 California Housing Market Forecast shows that existing home sales are expected to rise in 2016 by 6.3% more than 2015’s expected total. Additionally, existing home sales are expected to hit 407,500 in 2015, which would also represent a 6.3% increase over 2014, when there were 383,300 existing home sales. CAR’s forecast calls for existing home sales to rise to 433,000 in 2016.
The state’s rising prices are predicted to hold back home sales slightly. The California median home price is projected to increase 3.2% to $491,300 in 2016, following a projected 6.5% increase in 2015 to $476,300.
With projected nonfarm job growth of 2.3% in California in 2016, the state’s unemployment rate should decrease to 5.5% in 2016 from 6.3% in 2015 and 7.5% in 2014, the CAR forecast said.
Additionally, the CAR forecast projects the average interest rate for the 30-year, fixed mortgage will climb only slightly to 4.5%, but should still remain at historically low levels.
I hope this info regarding the 2016 California housing market predictions and news of continued low interest rates is comforting. If your future includes purchasing property in Napa Valley or Sonoma, please contact me at 707-738-4820 or email [email protected]. I am happy to share my insider information on quiet offerings of wineries, vineyards, estates, new construction and homes here, as well as the extraordinary properties that are not available on the open market.