The California Association of Realtors’ 2017 Housing Market Forecast is predicting that sales of single family homes in the Bay Area will decline by 5.6 percent in 2017. This comes on the heels of a projected 6.4 percent decrease this year.
The report cited two familiar reasons for the projected decline: restricted inventory and low affordability.
Meantime, the report predicts the area’s median sales price will increase by 6.4 in 2017 to $833,600 which means that only 29 percent of Californians will be able to afford the median-priced home.
Analysts believe that the healthy job market in the Bay Area will continue the demand for housing – it’s availability and affordability that remain the major questions.