Golden State home price appreciation is projected to slow to a six-year low in 2019, although rising mortgage rates will reduce affordability even further.
Real Estate Trends
Golden State homeowners once again enjoyed the largest equity gains in the country in the second quarter, and that trend appears poised to continue, as California's is projected to lead the U.S. for annual home price appreciation by the summer of 2019.
Both the number of Americans who believe that the time is right to sell a home and those who think that the economy is headed in the right direction are at all-time highs as the third quarter ends, though qualifying for a mortgage worries a substantial portion of the population.
While most homebuyers are willing to sacrifice some amenities to gain access to top-performing schools, there are some features that are considered must-haves.
Downtown Los Angeles has seen its millennial population explode over the past few years, while The Castro and Glen Park are the most popular destinations in San Francisco.
Survey results released earlier this summer showed that nearly 80 percent of recent homebuyers sacrificed some amenities to purchase a property in their desired school district, and now another poll echoes the importance of education in the real estate decision-making process.
While millennials represent the largest group of U.S. homebuyers, they can expect the generation behind them to offer stiff competition in the market, with California a preferred destination for both age brackets.
Though first-time homebuyers face multiple challenges in today's housing market -- including rising interest rates, strong appreciation, and critically low inventory levels -- that group was busier than it has been in 13 years in the first half of this year.
The U.S. housing market does not appear to be headed for another crash, though a lack of affordability remains problematic, both nationwide and in California.
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