Growing Demand and Higher Home Sales

SoCal-based financial information company CoreLogic recently offered its real estate market forecast for 2016 using their widely cited Home Price Index (HBI). Much like other forecasters, CoreLogic expects a rise in home sales and prices next year, as demand for housing continues to grow.

According to this report, β€œthe improved macro-economy has brightened the financial outlook for many Californians and enhanced their sense of financial security.” As of this year, home buying activity has the potential to lift Californian home sales to a level not seen since 2007 (before the housing market collapsed). Prices are also expected to rise faster than inflation, albeit slower than last year, in 2016. Popular opinion among industry professionals is that strong demand will drive prices up in 2016, but at a more steady cadence than 2015. In essence, 2016 could see additional but smaller home-price gains in California.