The California Association of Realtors released its 2017 market forecast report last month and the outlook is positive. Home sales are expected to rise marginally although the current prices reflect the slowest increase in six years. This stable growth shows that the market is healthy again and functioning normally, as it historically has done. According to C.A.R President, Pat Zicarelli, “ Next year, California’s housing market will be driven by tight housing supplies and the lowest housing affordability in six years “. We’re likely to continue to see housing growth in the suburban areas as inventory continues to tighten and affordability is leaving prospective buyers with fewer options.
The chief economist and C.A.R vice president voiced his opinion of the state of affairs saying, “ With the California economy continuing to outperform the nation, the demand for housing will remain robust even with supply and affordability constraints still very much in evidence. The net result will be California’s housing market posting a modest increase in 2017. The underlying fundamentals continue to support overall home sales growth, but headwinds, such as global economic uncertainty and deteriorating housing affordability, will temper stronger sales activity.”