July 16, 2024

California Home Prices 2018

Real estate is very susceptible, when the economy suffers a change, real estate and the stock market are the first things to suffer. Real estate is good when there are strong first time buyers shopping for houses but unfortunately most first time buyers don’t have the financial means to qualify for a loan for the average San Diego detached home.  California Home Prices 2018:

California home prices 2018
California home prices 2018

This is causing many first-time buyers to move much farther away from their employment than they had anticipated. Also, a good portion of them, are receiving family financial help, whether it be in the form of a substantial monetary gift to help with the down payment,  and or cosigning on the home loan.

San Diego country home for saleBut, even in light of the above factors, prices for construction materials continue to increase, so I don’t think house prices will drop anytime soon, if at all. Real Estate prices should not be treated like stocks. They are not. Houses are a basic need. People will always need houses (either rent or buy). Because of continually growing population, there will always be a need for housing which should keep prices stable.

California home prices 2018 seem to be in a holding or cooling phase, coming out of a number of years of extraordinary home price appreciation. Naturally, no financial market can continue in any direction without strategic pauses. Plus, with the latest changes in interest rate write off deductions as well as state tax deductions, the California housing market has real fundamental reasons for entering into this cooling phase.

California Home Prices 2018

San Diego aerial photography

The big question, is whether this cooling phase will be just that, followed by a continuation of high California home price appreciation, or is the California housing market about to return to a somewhat normal equilibrium with just modest home price appreciation? Yes, there’s also a distinct third possibility for the California housing market . . . And that’s a housing market bust similar to what we saw starting in 2005.

So, as many California real estate insiders acknowledge, the California housing market is at a crossroads . . . Which way it’s going to go is anybody’s guess.

San Diego real estate market forecast - California Home Prices 2018

Click here if you would like to read the CASE-SHILLER real estate home price report

California Home Prices 2018