Programs and grants to provide direct assistance to address the housing crisis in California.
Make A DonationThe Rising Star Award program is a C.A.R. initiative designed to work with the brokerage community to recognize their up-and-coming agents.
Do you have an innovative idea(s) with regards to real estate? Submit your idea(s) for a chance to partner with C.A.R. and transform tomorrow's industry!
Scholarships for California students planning to pursue a career in real estate.
Find out more information on key diversity and inclusion programs and projects available.
New to the industry? YPN is a network to sharpen your skills, heighten your leadership, and connect with fellow REALTORS®.
As a member of C.A.R., you receive more than 100 free and discounted benefits. Find out more about your member benefits here.
C.A.R. Member Discounts NAR Member Discounts C.A.R. Insurance ProductsAs a new member of C.A.R. you have questions about your benefits and discounts. Find the answers here.
Member FAQsC.A.R.'s annual consumer advertising campaign creates awareness of the REALTOR® brand and demonstrates the many benefits of the consumer-REALTOR® relationship.
Who's Your REALTOR®?C.A.R. is a statewide trade association dedicated to the advancement of professionalism in real estate.
Annual ReportC.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos.
News ReleasesLooking for additional assistance? The Customer Contact Center is looking forward to serving you Monday through Friday between the hours of 8:30 a.m. and 4:45 p.m.
This site is designed to assist you in your profession by providing access to information on events
Need help finding the right person? Try searching through our various rosters & directories.
FOR RELEASE
October 12, 2017
C.A.R. releases its 2018 California Housing Market Forecast
Home sales and median price to increase in 2018 but at a slower pace
LOS ANGELES (Oct. 12) – With the economy expected to continue growing, housing demand should remain strong and incrementally boost California’s housing market in 2018, though a shortage of available homes for sale and affordability constraints will be a challenge, according to the “2018 California Housing Market Forecast,” released today by the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.).
The C.A.R. forecast sees a modest gain in existing single-family home sales of 1.0 percent next year to reach 426,200 units, up slightly from the projected 2017 sales figure of 421,900. The 2017 figure is 1.3 percent higher compared with the 416,700 pace of homes sold in 2016.
“Solid job growth and favorable interest rates will drive a strong demand for housing next year,” said C.A.R. President Geoff McIntosh. “However, a persistent shortage of homes for sale and increasing home prices will dictate the market as housing affordability diminishes for buyers struggling to get into the market.”
C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.3 percent in 2018, after a projected gain of 2.1 percent in 2017. With California’s nonfarm job growth at 1.2 percent, down from a projected 1.6 percent in 2017, the state’s unemployment rate will dip to 4.6 percent in 2018 compared with 4.8 percent in 2017 and 5.5 percent in 2016.
The average for 30-year, fixed mortgage interest rates will increase slightly to 4.3 percent in 2018, up from 4.0 percent in 2017 and 3.6 percent in 2016, but will still remain low by historical standards.
The California median home price is forecast to increase 4.2 percent to $561,000 in 2018, following a projected 7.2 percent increase in 2017 to $538,500.
“This year’s housing market can be told as a tale of two markets – the inventory constrained lower end and the upper end that’s non-inventory constrained,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “This trend is likely to continue into 2018 as active listings have declined across all price ranges for the past two years, but is most obvious at the lower end.”
“With tight inventory being the new ‘norm’ for the past few years and at least the upcoming year, we’ll continue to see fierce competition driving up prices, leading to lower affordability and weaker sales growth.”
2018 CALIFORNIA HOUSING FORECAST
|
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017p |
2018f |
|
SFH Resales (000s) |
439.8 |
414.9 |
382.7 |
409.4 |
416.7 |
421.9 |
426.2 |
|
% Change |
4.1% |
-5.9% |
-7.8% |
7.0% |
1.8% |
1.3% |
1.0% |
|
Median Price ($000s) |
$319.3 |
$407.2 |
$446.9 |
$476.3 |
$502.3 |
$538.5 |
$561.0 |
|
% Change |
11.6% |
27.5% |
9.8% |
6.6% |
5.4% |
7.2% |
4.2% |
|
Housing Affordability Index |
51% |
36% |
30% |
31% |
31% |
29% |
26% |
|
30-Yr FRM |
3.7% |
4.0% |
4.2% |
3.9% |
3.6% |
4.0% |
4.3% |
p = projected
f = forecast
Leading the way ...® in real estate news and information for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
# # #
# # #
