The California Association of Realtors predicts that the state’s real estate industry will see a 10% increase in house sales in 2025, with prices continuing to rise but at a slower pace than in previous years. The median price is expected to reach a record high of $909,400. Lower mortgage rates and an increase in homes for sale are expected to attract more buyers and sellers into the market.
Despite an increase in inventory, the demand is also expected to rise, keeping the market competitive and prices on the rise. The past two years have seen a slowdown in house sales, impacting various professionals in the housing industry. However, no recession is forecasted for 2025, with a projected decrease in gross domestic product and a slight increase in unemployment rates.
Overall, the forecast predicts a cooler economy in 2025, but no major economic downturn. The housing shortage in California is expected to persist, leading to continued price increases. With lower mortgage rates and more homes for sale, buyers and sellers are encouraged to enter the market, providing some relief to the beleaguered real estate industry in the state.
Source
Photo credit www.dailynews.com
