According to the California Association of Realtors’ 2018 housing market forecast Bay Area home can expect a 4.2 appreciation in 2018. This will, of course, continue to diminish affordability with approximately one-quarter of California households able to afford the median-priced home by the close of next year.

While home price appreciation will slow somewhat there is nothing to suggest that California’s low inventory will improve.

CAR expects the state’s unemployment rate to dip to 4.6 percent while mortgage rates will rise to 4.3 precent.