California Home Prices Set To Increase in 2019

So the predictions are in, even with interest rates set to increase throughout 2019, home prices are also predicted to go up.  The California Association of Realtors estimates that the median home price will increase by over 3% in 2019.  Now I realize that isn't the gain that most California home owners are used to but that is a positive outlook on the economy.  That might be half of what people have become accustomed to but with people running scared who were so hurt in 2008, hopefully this will ease their concerns.  C.A.R. does predict a decrease in the amount of homes sold from last year.  So that means homes could sit on the market for a little longer than normal.  We have been so spoiled in California with the ever increasing home values, lower interest rates and ease of selling your home that we have become blind to what a normal market is.  We are not on our way to another housing crisis and the market is not going to crash.  We will see a hiccup and a shake up as interest rates rise and the market becoming a little more volatile.  But overall it will still be a good year to be a home owner in California.  Weather you are a buyer or a seller, you should still be in good shape as the year rolls on.

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Dan Schmid