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News & Press: Industry News

C.A.R. Issues 2018 Housing Forecast

Tuesday, November 21, 2017  
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The C.A.R. housing forecast for 2018 sees a modest gain in existing single-family home sales of 1.0 percent next year to reach 426,200 units, up slightly from the projected 2017 sales figure of 421,900. The 2017 figure is 1.3 percent higher compared with the 416,700 homes sold in 2016. The California median home price is forecast to increase 4.2 percent to $561,000 in 2018, following a projected 7.2 percent increase in 2017 to $538,500. A shortage of available homes for sale and affordability constraints will be a challenge, according to the forecast. The average for 30-year, fixed mortgage interest rates is predicted to increase slightly to 4.3 percent in 2018, up from 4.0 percent in 2017 and 3.6 percent in 2016. The report notes that mortgage rates remain low by historical standards. C.A.R. expects to continue to see competition for available inventory driving up prices, leading to lower affordability and weaker sales growth.

California Land Title Association

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