In April, CoreLogic, an organization that monitors housing trends nationally, had California housing prices forecast to raise 4.6 percent in the 12-month period ending April 2025. They look 12 months ahead and 12 months back to make their predictions and they have 36 states (including California) slowing down over that period. Looking back, they show California prices up 7 percent versus 5.3 percent nationally so it is clear our market has been strong this past year.
However, it makes sense that California price increases will slow down. At some point the lack of affordability has to catch up. "Gains in our market happened in a period with the highest mortgage rates in two decades and a cooling economy - a combo that's historically bad new for house hunting," wrote one of my favorite reporters, Jonathan Lansner, in a recent article in the Union-Tribune. We have felt it locally. The last month we have had more open houses than before COVID. Open houses indicate sellers are trying to cast a net to find more buyers and agents are out trolling for potential clients. During a strong market we don't see as many open houses. I have also noticed more price reductions the last month than I had seen in several years. That could be due to aspirational pricing but also could be a sign of things to come. Do I see a crash? Not at all. I just think prices will stabilize as more inventory comes on the market as we are seeing now.
