Mortgage Rates Cause California Sales to Slow This Summer

Rising Home Prices, Mortgage Rates Cause California Sales to Slow This Summer

• CoreLogic’s latest Home Price Index rose by 6.8 percent year over year in June, though annual appreciation is expected to relax moderately by next summer.
• California home prices increased by 8.4 percent on an annual basis, with year-over-year gains projected to hit 9.1 percent by June 2019.
• Home prices in the San Francisco and Los Angeles metropolitan areas increased by a respective 11.2 percent and 7.6 percent year over year.

Home price growth in California, the Bay Area, and Los Angeles, outpaced the national rate in June, further hampering affordability and keeping a lid on sales activity.


While many Californians are feeling the state’s housing affordability crunch, it remains a national problem. Nearly half of all renters that CoreLogic surveyed cited affordability concerns as their reason for being disinterested in homeownership. Younger millennials were more likely than other age groups to point to the high cost of buying a home, with almost two-thirds say that a lack of affordability is a barrier. Read full article @elizabethGkilgore




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