One of the best ways to have a smooth home sale is to make sure you understand what’s going on in your local economy and real estate market. You also need to understand how market trends may impact your transaction. This post will examine 2016 California economic and real estate market trends and will take a look at 2017 projections. Read on to get informed!
California Association of Realtors research shows that the median home price in 2016 increased by about 6.2% over the previous year. This equates to a median sales price of $503,900. 2017 expectations include a modest 4.3% increase in home prices – the slowest appreciation rate in six years. With that in mind, median home prices are expected to top out at around $525,600. The slowdown in value growth can be attributed to the fact that home prices have been rising aggressively for several years now. Which leads us to our next point…
California Housing Market Reaches a Plateau of Sorts:
When compared to the 408,800 homes sold in the California in 2015, the 2016 figure of 407,300 indicated a relatively flat market. With limited homes and a lack of affordable housing options, people will be forced to look outside urban areas in an effort to find options that meet their budget. But that’s not bad news for you as a seller – in fact, it’s quite the opposite. With continued growth predicted and high demand, you’re in a great position to make excellent returns on your property.
Statistics Point to Healthy Growth:
The California economy is thriving and is predicted to continue to be clear and sunny – with increased job openings and rising salaries – throughout 2017. The state experienced an increase of about 1.5% in gross domestic product in 2016 and the unemployment rate continued to drift downward to 5.5%. Though interest rates increased in 2016, they capped out at 3.6%, which is still considered a historic low. 2017 is expected to bring increased rates at about 4%, which means buyers are eager to lock in a purchase before rising rates lowers the amount of house they can afford.
Condo & Townhome Prices on the Rise:
Due, in large part, to millenials and empty-nesters seeking to buy in central locations, condo and townhome prices have been on the rise. In fact, median prices for townhomes and condos rose nearly ten percentage points, reaching their highest pricing levels to date in 2016. This is a direct result of supply and demand. And as single family homes increase in cost and become more out of reach for many home shoppers, the demand for multi-unit dwellings will continue to rise. This is excellent news if you own an investment condo or townhome in California that you’d like to sell or rent. Now’s a good time to sell and get excellent returns, or if you prefer to be a landlord, you can cash in on your tenant’s willingness to pay increased rent prices.
Now that you understand 2016 market trend and 2017 predictions, you can feel more confident in your 2017 real estate decisions.
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