- California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist.
- Existing home sales will increase 6.3 percent next year to reach 433,000 units, up from the projected 2015 sales figure of 407,500 homes sold.
- In regions where inventory is tight, such as the San Francisco Bay Area, sales growth could be limited by stiff market competition and diminishing housing affordability.
- Demand in less expensive areas such as Solano County, the Central Valley, and Riverside/San Bernardino areas will remain strong thanks to solid job growth in warehousing, transportation, logistics, and manufacturing in these areas.
- The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.5 percent.
This is a summary of an article in C.A.R. ‘s website, read the article in detail here.