08 Oct 2022 California Housing Forecast
According to the California Association of Realtors, the California housing market will remain solid if the pandemic is kept under control.
There will be structural challenges, however.
C.A.R.’s housing and economic forecast states,”Supply constraints and higher home prices will bring California home sales down slightly in 2022. but transactions will still post their second highest level in the past five years.”
Existing single-family home sales are forecast to total 416,800 units in 2022, a decline of 5.2 percent from 2021’a projected pace of 439,000 (statistics obtained from C.A.R. website)
California’s median home price is expected to rise 5.2 percent to $834,400 next year. This year is expected to end with a 20.3 percent increase to $793,100 in 2021. (statistics obtained for C.A.R. website)
Housing affordability, according to C.A.R., is expected to drop to 23 percent next year from a projected 26 percent in 2021.
“Assuming the pandemic situation can be kept under control next year. The cyclical effects from the latest economic downturn will wane and a strong recovery will follow.” says Jordan Levine, C.A..R. Vice President and Chief Economist. He continues, “However structural challenges will reassert themselves as the normalization of the market continues . Demand for homes will continue to outstrip available supply as the economy improves, resulting in higher home prices and slightly lower sales in 2022.”