CoreLogic, one of the country’s largest real estate data and analytics firms, has looked at 2017’s market and made some initial predictions for the 2018 market: basically, that home prices will increase across the country, but not as much as 2017.
HousingWire.com reports – “CoreLogic’s HPI showed home prices increased 7% from November 2016 to November 2017 and jumped 1% from October to November. But these home price increases are expected to slow into 2018 as the CoreLogic HPI Forecast shows home prices will increase by just 4.2% from November 2017 to November 2018. Monthly, home prices are predicted to increase 0.4% from November to December.” The CoreLogic report also makes a few other points stating that low inventory will continue putting upward pressure on prices, and its “Market Condition Indicators showed 37% of the largest 100 metropolitan areas in the U.S. are now overvalued in terms of housing stock.”
Predictions at this point in the year are difficult to make. And California’s market, and specifically San Diego’s, are different than the national market conditions and related predictions, so national market forecasts have limited value. The federal tax law changes that just went into effect may also impact the market in Southern California more so than in other areas, leading to a flattening of prices, if not a decrease as some have California real estate economists have predicted. It will likely take a quarter or two before the market responds to the tax law changes.
I will report on the market as the year gets underway, and will focus specifically on San Diego and California. Stay tuned!