inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/content/2021/01/screenshot2021-01-04at1.48.10pm-3.png
CREATING WEALTH THROUGH REAL ESTATE
  • Home
  • Listings Search
  • Blog
  • About Crissi
inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/logo/2020/01/dpp-picture-2.jpg
626-975-1433
crissiann@gmail.com
01418334
Sign In
Sign Up
inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/content/2021/01/screenshot2021-01-04at1.48.10pm-3.png
CREATING WEALTH THROUGH REAL ESTATE
  • Home
  • Listings Search
  • Blog
  • About Crissi
inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/content/2021/01/screenshot2021-01-04at1.48.10pm-3.png
CREATING WEALTH THROUGH REAL ESTATE
inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/content/2020/01/ericcharleswebres-mg0574pmhdr.jpg

C.A.R. releases its 2020 California Housing Market Forecast

inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/logo/2020/01/dpp-picture-2.jpg
Crissi Avila,01/6/2020

Economic uncertainty and affordability issues to subdue California home sales

LOS ANGELES – Low mortgage interest rates will support California’s housing market in 2020 but economic uncertainty and affordability issues will mute sales growth, according to a housing and economic forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). 

C.A.R.’s “2020 California Housing Market Forecast” sees a small uptick in existing single-family home sales of 0.8 percent next year to reach 393,500 units, up from the projected 2019 sales figure of 390,200. The 2019 figure is 3.1 percent lower compared with the pace of 402,800 homes sold in 2018.

The California median home price is forecast to increase 2.5 percent to $607,900 in 2020, following a projected 4.1 percent increase from last year to $593,200 in 2019. 

“With interest rates expected to remain near three-year lows, buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties,” said C.A.R. President Jared Martin. “Additionally, an affordability crunch will cut into demand in some regions such as the Bay Area, where affordability is significantly below state and national levels. These factors together will subdue sales growth next year.”

C.A.R.’s forecast projects growth in the U.S. gross domestic product of 1.6 percent in 2020, after a projected gain of 2.2 percent in 2019. With California’s 2020 nonfarm job growth rate at 1.0 percent, down from a projected 1.5 percent in 2019, the state’s unemployment rate will tick up to 4.5 percent in 2020 from 2019’s 4.3 projected figure.

The average for 30-year, fixed mortgage interest rates will dip to 3.7 percent in 2020, down from 3.9 percent in 2019 and 4.5 percent in 2018 and will remain low by historical standards.

“California’s housing market will be challenged by changing migration patterns as buyers search for more affordable housing markets, particularly by first-time buyers, who are the hardest hit, moving out of state,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “With California’s job and population growth rates tapering, the state’s affordability crisis is having a negative impact on the state economically as we lose the workers we need most such as service and construction workers, and teachers.”

In fact, according to C.A.R.’s 2019 State of the Housing Market Study, nearly a third (30 percent) of those sellers who planned on repurchasing said that they will buy their next home in another state outside of California — the highest level since 2005. Older generations were more likely to buy outside of California as 37 percent of baby boomers and silent generation planned on repurchasing in another state, but only 30 percent of Millennial sellers planned to do the same.    

2020 CALIFORNIA HOUSING FORECAST

2015 2016 2017 2018 2019p 2020f
SFH Resales (000s) 409.4 417.7 424.9 402.8 390.2 393.5
% Change 7.00% 2.00% 1.70% -5.20% -3.10% 0.80%
Median Price ($000s) $476.30  $502.30  $537.90  $570.00  $593.20  $607.90 
% Change 6.60% 5.40% 7.10% 6.00% 4.10% 2.50%
Housing Affordability Index* 31% 31% 29% 28% 32% 32%
30-Yr FRM 3.90% 3.60% 4.00% 4.50% 3.90% 3.70%

p = projected
f = forecast
* = % of households who can afford median-priced home

Leadingthe way …® in realestate news and information for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) isone of the largest state trade organizations in the United States, with morethan 200,000 members dedicated to the advancement of professionalism in realestate. C.A.R. is headquartered in Los Angeles.

You can also email me if you’d like me to send you a copy! – Crissi

 

Print Details
Previous post
Programs that help first time homebuyers in LA

Have a question?

SEND
Submitting
Oops! Error occurred.

Search listings

Enter city, zip, neighborhood, address…
Loading in progress…
No results found
Type in anything you’re looking for
Search by address:
e.g. 239 Silvelining Lane, Boston
Search by city:
e.g. Dorchester, South End, Beacon Hill
Search by neighborhoods:
e.g. Dorchester, South End, Beacon Hill
Search by zip code:
e.g. 02201, 02128, 02139, 02165
Search by mls id:
e.g. 354153, 366233, 358426, 361614
Search

Office

the collective Realty
8278 1/2 Santa Monica BlvdWest Hollywood
CALIFORNIA 90046
310-569-1335
www.thecollectiverealty.com

Essentials

  • Home
  • Listings Search
  • Blog
  • About Crissi

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.
inception-app-prod/ZTY4YzA1ZTktZDhiMy00MzlkLTk1YzctMzY4YzY5ZmY5NWM4/content/2021/01/thecollectiverealtylogo-2.jpg
CREATING WEALTH THROUGH REAL ESTATE

© 2021 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reseted.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Success! Your message was sent!
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!
You may now log in into your account
Go to the homepage
Error
Please try again.
Go to the homepage

Share this listing

Copy Link