Home sales volume in California will increase minimally in 2017: Economist

Sale volume is slated to see a nominal increase, while median sales price will rise 4.3 percent

Oct.October 10, 2016 12:15 PM

Despite a dip earlier this yer, California’s Association of Realtors predicts a slight uptick in home sales volume in 2017.

It will see a 1.4 percent increase, according to Leslie Appleton-Young of the Association, who gave her forecast of the market at a recent expo in Long Beach.

She estimated that 413,000 homes will be sold next year, according to GlobeSt — a rise from this year’s projection of 407,300 homes sold and the 408,800 homes sold in 2015. The increase is expected due to a growing GDP and California’s fast diminishing unemployment rate, which is slated to dip to 5.3 percent from 6.2 percent in 2015.

“With the California economy continuing to outperform the nation, the demand for housing will remain robust…,” she said. “The net result will be California’s housing market posting a modest increase in 2017.”

But affordability remains an issue, she added, driven by the imminent rise in interest rates. Still, the market will remain strong and the median sales price is expected to grow yet another 4.3 percent to the median value of $525,600.

In July, Bloomberg named L.A. one of the six least affordable metropolitan areas to purchase a house. [GlobeSt]Cathaleen Chen

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