In June, the California Association of Realtors put out a report that compiles data from the last several years up through the first half of this year. The report uses the data to forecast the state of the California housing market through 2016, and the numbers look great. Based on the data gathered, there is good reason to believe that home prices will continue to rise as the economy grows even stronger and more people return to the housing market.
According to the report, the median home value for a single family house in California last year was $447,000. This year, that figure is predicted to rise to $470,600. In 2016, median home values in California are expected to soar even higher, reaching $491,300. That equates to an increase of 5.3% in 2015 and a predicted 4.4% increase in 2016.
Of course, these figures aren’t exactly affordable for average Californians. Indeed, the housing affordability index is expected to be 31% at the end of this year and just 27% in 2016. That’s a serious decline from the high of 53% in 2011, but that means that home values are back where they should be for California’s marketplace.
The number of home sales is also expected to go up. Whereas home sales hit a low point of 383,300 single family home resales in California last year, this year home sales are expected to surpass 400,000. In 2016, it’s predicted that 423,200 single family homes will sell. And that doesn’t include new homes.
These great figures can be attributed in part to the steady improvement of the US economy. Our expected GDP growth this year is 2.5% and is forecasted to rise to 2.8% in 2016. Unemployment has also reached a low point for the last five years, hitting 5.4% this year and expected to drop to 5.1% next year.
All of this is good news for property investors. With the right house flipping loans, flippers can invest in underpriced homes in up and coming neighborhoods with relative certainty that their investment will pay large dividends in just a matter of months.
If you have questions about ZINC Financial’s fix and flip loans, give our office a call today at (559) 326-2509. Our team of real estate experts will help you navigate the current marketplace and find the funding option that is best for you.