- The California Association of Realtors’ 2018 forecast calls for 4.2 percent single-family home price appreciation next year.
- Affordability is expected to further diminish, with only about one-quarter of California households able to afford the median-priced home by the end of 2018.
- The state’s unemployment rate will fall to 4.6 percent, while mortgage rates will rise to 4.3 percent.
California home price appreciation should slow next year, although there appears to be no end in sight for the state’s severe and prolonged inventory shortage.
That’s according to the California Association of Realtors’ 2018 housing market forecast, which says that the median sales price for an existing single-family home in the state should close out 2017 at $538,500, up 7.2 percent year over year. CAR predicts that appreciation will slow to 4.2 percent in 2018, putting the median price at $561,000 by the end of next year.