State housing slowdown predicted
California’s housing market is expected to weaken next year, the result of high prices that will keep buying a home out of reach for many people, according to a report.
Home sales are also expected to decline next year for the first time in four years, the California Association of Realtors’ 2019 housing market forecast reported.
Single-family home sales are expected to decline 3.3 percent next year, a drop the forecast called “modest.” About 396,800 units are expected to be sold statewide next year, down from the original projection of 410,460 units sold.
“While home prices are predicted to temper next year, interest rates will likely rise and compound housing affordability issues,” association President Steve White said in the statement. “Would-be buyers who are concerned that home prices may have peaked will wait on the sidelines until they have more clarity on where the housing market is headed.
“This could hold back housing demand and hamper home sales in 2019.”
California’s median home price is forecast to increase next year by 3.1 percent, to $593,450, according to the forecast.