Southern California Home Sales in 2016 – “California’s housing market is expected to improve in 2016, but a shortage of available inventory and continuing high costs are expected to limit the improvement …”
Southern California Home Sales in 2016:
California Real Estate Market Predictions
It’s that time of year again, when the November numbers are all in and tabulated, and we’re close enough to the end of December that we can reliably start to forecast the direction of Southern California Home Sales in 2016. The California Association of Realtors has just released it’s annual prognostication of what the California real estate market will likely be like during the coming year.
The CAR report reflects the type of 2016 market forecast that most experts hold at present. In all liklihood we are looking at an improving market, but one that is advancing slower than before. There are several factors that may weigh on the market here in California and put a moderating influence on any faster improvement.
The CAR report itself is very dense and technical, of course. However, here’s an article by Ben Lane that just appeared on HousingWire.com. Ben gets to the heart of the matter and explains the bottom line of the report in a clear and easily understandable fashion. This is the essence of what we’re likely to see in the coming year..
“The state’s rising prices are predicted to hold back home sales slightly. The California median home price is projected to increase 3.2% to $491,300 in 2016, following a projected 6.5% increase in 2015 to $476,300. Despite those increasing prices, 2016 is still estimated to have the slowest rate of price appreciation in five years.”
Southern California Home Sales 2016:
Some Forecasters Are More Pessimistic
There are some out there who are making more pessimistic forcasts for the future of Southern California Home Sales in 2016. Although they are in the minority, they are basing their predictions on valid concerns. We’ll cover one of those forecasts in these pages this coming Wednesday, so stay tuned for that.
In the meantime, for those who really want to get “into the weeds” with the technical information in the CAR report and put together their own 2016 Home Sales Forecast, we’ve included a slideshow of charts and more detailed information below. These are the charts and graphs, along with some information pertinent to Realtors, that the California Association of Realtors used to introduce and illustrate its report. If you’re a “numbers cruncher” and “graph watcher”, this slideshow will provide you with the entire picture.