Josh and I attended the Palos Verdes Board of Realtors' breakfast meeting this morning. The breakfast was okay, but the speaker, the chief economist for California Association of Realtors, was excellent.
I covered most of the information she shared in my end of the year video message, but some interesting points were:
- The 2016 California housing market is projected to be more robust than 2015--good, but not great due to limited inventory and a gradual increase in interest rates.
- Mortgage rates are projected to stay relatively attractive with only small and slow increases in 2016. The average interest rate is projected to be 4.5%.
- Affordability continues to be an issue--only 24% of L.A. residents can afford the average home.
- The "new normal" is only three to four months of housing inventory for many CA cities.
Based on our market snapshots, 2016 begins with a still-strong housing market for sellers. However, the interest rates are still attractive to buyers and the steep rise in property values has tapered off. Price increases are forecast to be in the low to middle single digits for 2016.
If this is your year to sell or buy a Palos Verdes or South Bay property, Charlemagne Int'l Properties would be honored to help you achieve the best possible results.
Norma Toering 310-493-8333