The expectation for Federal Reserve to increase Fed Fund rate in December is getting higher. The question in many home buyers and sellers’ minds is what the housing price will head once the rate starts to increase. The leading global property information, analytics and data-enabled solutions provider CoreLogic forecast is for prices to continue to rise over the next 12 months but for the pace to slow to 5.2 per cent price increase nationwide.
Home prices increased by an average 6.8 per cent in the year to October 2015 according to CoreLogic.
“Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices. These conditions are likely to persist as we enter 2016,” said Dr. Frank Nothaft, the firm’s chief economist.
Anand Nallathambi, president and CEO of CoreLogic added: “As we move forward, the rise in home prices will need to be better correlated to family income trends over time to avoid homes becoming unaffordable for many. This is especially true in several metropolitan areas where home prices have grown rapidly.”
For California housing market forecast and Santa Clara County real estate statistics, check our latest market trend report
If you need a personalized consultation, please contact us at 408-799-2558.
