What Economists Are Predicting for Housing in 2016

By
Real Estate Broker/Owner with Charlemagne International Properties BRE# 01147470

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:

  1.  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.
  2. 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%.
  3. Affordability continues to be an issue--only 24% of L.A. residents can afford the average home.
  4. The "new normal" is only three to four months of housing inventory for many CA cities.

Slider Jan 2016 all

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

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Topic:
Real Estate Market Trends
Location:
California Los Angeles County Rancho Palos Verdes
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palos verdes homes for sale
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Rainmaker
401,323
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Norma, thanks for sharing the info you gained from your CA realtor association on projecting the housing market for 2016. From your state's stand point it looks good for 2016.

I was in a Realtor Association class today here in Florida and the question was asked how do you see 2016. Some saw the prices going up, some saw a slight decline. We may just have to wait to see what happens.

It will depend on if the mortgage rates go up. If they do that will suppress home prices.

Good post.

Jan 07, 2016 07:49 AM #1
Rainmaker
1,523,705
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Well it definitely looks like Palo Altos California is in a seller's market!

Jan 07, 2016 11:58 AM #2
Rainmaker
536,759
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Nice informative repost.  No matter the market there will always be limited inventory when and where watere is involved.  Make it a great weekend.  Mark

Jan 07, 2016 12:40 PM #3
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Palos Verdes Luxury Homes in L.A.
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