Buyers in California may find that they can find better deals on homes in 2018. This is because rising prices and changes to tax laws may reduce the demand for properties on the open market. According to the chief economist of the National Association of Realtors, home sales are likely to remain flat or decline during 2018 in spite of the fact that there are likely to be an increase in jobs over that period.
Since 2015, the median home price has increased about 6 percent per year. However, the median home price is expected to increase only 2 percent in 2018 to about $253,000. Since 2011, the median home price has increased 48 percent overall. There is currently a large supply of homes, and the lack of inventory is partially attributed to investors who have held onto their rental properties as home values and rents have gone up.
In addition, baby boomers have chosen to stay in their homes as opposed to living in retirement communities or moving elsewhere to retire. Rising mortgage rates may also reduce the number of buyers on the market. Rates are forecast to rise to roughly 5 percent in 2018 from current rates of 3.9 percent.
There are many factors that may need to be taken into consideration when selling a residential property. One of the major factors may be the state of the housing market when it comes time to sell. The condition of the home may also influence buyers. It may be worthwhile to talk with a real estate agent about ways to sell a home quickly and at the right price. An attorney may help a seller meet disclosure obligations as well.