California’s housing recovery is projected to continue for a sixth straight year in 2018, but gains will be more modest than in the past, according to the California Association of Realtors housing forecast released Thursday, Oct. 12.
The median price of an existing house will increase 4.2 percent to $561,000 next year, compared with a projected increase of 7 percent in 2017.
Sales will rise 1 percent to 426,200 transactions, somewhat weaker than the 1.3 percent gain projected for this year.
After five years of recovery, prices are getting too high for some buyers, while the number of homes to choose from remains too low, said CAR Chief Economist Leslie Appleton-Young.
“It’s kind of a slow squeeze between low inventory and higher prices,” Appleton-Young said. “It’s certainly not a demand-side issue. … It’s an affordability issue and what do I choose from.”
While half of Californians could afford the median-priced house when the recovery started in 2012, only 26…