The housing sales statistics have not been the same in California over the past few months. The sales rapidly grew in San Francisco, Los Angeles, and Orange Country, San Jose, and San Diego because the real estate prices are on the decline in many districts in California. The realtors across the state want to know how the California real estate market will perform in 2019.
Another concern for many is how home prices will affect the new home construction market. New home construction is currently very strong in places like Orange and Riverside counties. The slowing of the market could reduce inventory and cause an increase in home prices even further. Learn more about the current real estate market in the Inland Empire.
As we all know, California has been the shining star in the US housing market for a long time. Will it remain the same or not, it is quite doubtful. Let’s explore more to know what to expect in 2019.
The California Association of Realtors predicts a weaker housing market in 2019:
As the prediction came out, the real estate experts have started wondering about the causes of a slower housing market in 2019. As some experts are speculating, the homeowners in California are willing to hang onto their properties because there is no better location is available to move to. If there are properties available at better locations, their prices are skyrocketing. Therefore, people are currently willing to stay in their current houses. This reason can subdue real estate sales throughout 2019. The realtors will need some better strategies to convince the buyers that investing in new properties in order to gain some profit.
The C. A. R. president Steve White has stated that home prices are expected to temper during the next year. The interest rates will certainly rise and therefore people looking for affordable houses may feel disappointed. The buyers looking to buy affordable homes may wait a bit longer to get a clearer picture of the
Appleton Young’s forecast:
Leslie Appleton Young is the senior vice president of C.A.R and he is the one who has delivered 2019 housing market forecast. He believes, there is housing supply shortage which has caused the surge in home prices. The housing prices have been growing over the past few years which have eventually taken a toll on California’s real estate market. Even though it is not a buyer’s market today, the pointers are moving in that direction. If the sales will continue to drop, the housing prices will also drop.
Young states that modern buyers are feeling exhausted because of expensive prices. They are not in a mood of buying a new property for a while because they are not willing to spend a lot of money buying a new house. Buyers are simply waiting t see when the prices will get in their budget range so that they can make an investment.
Bill Moody, the President of Silicon Valley Association of Realtors:
Bill was present in the C.A.R. meeting and he stated that rising interest rates are quite concerning and causing affordability issues in the California real estate market. He agrees that there will be a case of buyer fatigue because it will be caused by rising interest rates. He said that we can make the buyers believe that the interest rates are still quite low in comparison to double-digit interest rates of 1980s. However, he also said that a one-point rise in the interest rates can cost thousands of dollars to buyers and they may not agree to stretch that much. So, the buyers may wait until the interest rates come down.
All in all, the housing sales are expected to decline in 2019 because of expensive prices. Even with the raised cap on FHA loan