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.
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.
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.
The year 2018 is already almost halfway over, and more home price growth is expected for the remainder, with the nation's serious inventory shortage still a problem for the near future -- especially at the low end of the market.
The Bay Area's real estate market and high-performance economy are currently running at full steam and appear poised to carry that momentum over the long term.
Although home prices should continue to increase for the rest of the decade, a bubble does not appear imminent nationwide, in California, or in the Bay Area.
Good news for Bay Area homeowners whose list of 2018 new year's resolutions includes a renovation project: Most improvements are expected to turn a profit at the time of sale.
Following our two live November events, Pacific Union has produced six exclusive regional real estate and economic forecasts to 2020 for the Bay Area and Los Angeles County in partnership with John Burns Real Estate Consulting.
More homes should hit the market next year, causing appreciation to slow, although price growth in the Bay Area's two largest metropolitan areas is projected to outstrip the national rate.
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