2017 Is Following the Predictions It Was Given A year Ago For Sale Prices And Inventory
Experts from both the California Association of Realtors, and the National Association of Realtors predicted that inventory would stay tight, sales would stay strong and appreciation would hover around 5%. All of these predictions, have in fact, come to fruition. There has been no real surge of sales, no further dip in inventory, and interest rates have remained attractive to would be buyers. In fact, due to causal factors that appear currently in the real estate market, next year is likely to be about the same as this year.
What factors would these be? Namely buyer demand is unlikely to lessen, inventory may actually rise next year, creating a slight bump in year over year sales, interest rates are stable and unlikely to rise substantially, only incrementally, employment and wages should remain steady. The only real crimp to it all is that builders are lacking. This may put more stress on the aging boomers, who have been hesitant to put their primary home on the market. In some cases, millennial children are living at home creating a multi-generational housing trend not seen since prior to WWII, whose post housing boom saw the creation of the nuclear family. Good news for people entering the single-family resale market, as prices are likely to continue to rise.
Potential US buyers have a lot of competition, as foreign home buyers set a U.S. record with 284,455 properties in a one-year period, led by the Chinese. While the Chinese national leads the way, the biggest surge in buyers year over year (for the period ending March 31, 2017), was from Canada. According to CoreLogic’s report, home prices escalated all over the Southland, not just Orange and LA counties, but also the Inland Empire and San Diego.