Economists say that 2020 will be positive but not stellar for the housing market in California.
Although last year they expected mortgage rates to rise and they fell keeping real estate markets much stronger than anticipated. Lesson…real estate predictions can be tricky business.
CALIFORNIA STILL SHOWING GROWTH
Despite some predictions from expert economists that the west would face a tough 2019 real estate market, California proved to be one of the better housing markets in the country. In fact, the Central Coast median home prices were up 3.3% year over year according to the California Association of Realtors. Southern California had a 7.5% rise, the Central Valley up 6.3%, while the Bay Area had only a 2.2% rise.
PERSISTENT LACK OF SUPPLY
California’s housing market will continue to be fueled by a persistent lack of supply, keeping pressure on rising home purchasing and rental prices. Sales of homes $500k and $1 million rose by 15.5% on average, yet sales under $300k dropped sharply by 14.2% and homes over $2 million dropped slightly by 3.2%, according to California Association of Realtors.
SELLER OPTIMISM RISING
In CAR’s buyer survey, respondents who thought it was a good time to sell increased 4% to 51%. Only 24% of buyers stated they felt it was a good time to buy, down only 1% from last year, despite lower rates. Prices, down payments, and selection are likely the key factors stopping buyers from buying homes. With higher real estate prices, first time buyers will continue to struggle to come up with a down payment thus keeping the rental market strong.
Whether you are looking to buy or sell, market conditions are looking good for 2020. As the #1 broker on the Central Coast, C21 Hometown Realty’s Agents have the most homes listed and the most homes sold! Visit one of the ten local offices throughout the Central Coast or click on c21home.com.
About CENTURY 21 Hometown Realty – Hometown Realty is the leading real estate firm on the Central Coast of California with offices spanning Santa Barbara County and San Luis Obispo county offering expert agents and convenient locations.