California home sales will end 2018 at a lower level for the first time in four years while the 2019 market is poised to be weak, according to a new economic forecast
released by the California Association of Realtors (CAR).
CAR is predicting a 3.3 percent decline in single-family home sales next year that will total 396,800 units, down from the projected 2018 sales figure of 410,460. The 2018 figure is 3.2 percent lower compared with the 424,100 total of homes sold in 2017.
But while sales may decline, prices will not tumble with them. CAR forecasts the California median home price will increase 3.1 percent to $593,450 in 2019, following a projected seven percent increase in 2018 to $575,800.
“While home prices are predicted to temper next year, interest rates will likely rise and compound housing affordability issues,” said CAR President Steve White. “Would-be buyers who are concerned that home prices may have peaked will wait on the sidelines until they have more clarity on where the housing market is headed. This could hold back housing demand and hamper home sales in 2019.”