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California’s Association of Realtor’s 2019 Forecast

 
California’s Association of Realtor’s somewhat dreary forecast for 2019 is starting off to be true in some areas but not all:
C.A.R.’s “2019 California Housing Market Forecast” sees a modest decline in existing single-family home sales of 3.3% next year to reach 396,800 units, down from the projected 2018 sales figure of 410,460. The 2018 figure is 3.2% lower compared with the 424,100 pace of homes sold in 2017.
“Would-be buyers who are concerned that home prices may have peaked will wait on the sidelines until they have more clarity on where the housing market is headed. This could hold back housing demand and hamper home sales in 2019.” C.A.R. President Steve White predicted.

Prices are high, we are seeing some price softening.

But they got it wrong on interest rates: in an unexpected adjustment, interest rates dropped to the low 4”s and can even be had in the upper 3’s! So that may encourage some tired buyers to come out of hiding. 
“The surge in home prices over the past few years due to the housing supply shortage has finally taken a toll on the market,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Despite an improvement in supply conditions, there is a high level of uncertainty about the direction of the market that is affecting homebuying decisions. This psychological effect is creating a mismatch in price expectations between buyers and sellers and will limit price growth in the upcoming year.”
 

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