Sales of existing single-family homes in California are expected to drop 5.2 percent in 2022, according to the California Association of Realtors.
California’s median home price will increase 5.2 percent next year, to $834,400, the association predicted in its 2022 housing forecast, which it released Thursday.
To put the median price forecast in perspective, one year ago the Los Angeles-based trade group was predicting a 20.3 percent increase.
Also, housing affordability in California is expected to drop to 23 percent next year from a projected 26 percent increase one year ago.
“A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale,” said the association President Dave Walsh.
“Homeownership aspirations remain strong and motivated buyers will have more inventory to choose from. They will also benefit from a favorable lending environment, with the average 30-year fixed rate mortgage remaining below 3.5 percent for most of next year.”
The association also predicts 4.1 percent growth next year for the U.S. gross domestic product, and California’s unemployment rate to fall to 5.8 percent.