PRICE APPRECIATION – The home appreciation rate will continue to rise in 2018, but not at the double-digit pace we’ve seen the past few years. Homeowner can expect to see appreciation rates in the range of four to seven percent in 2018, as lack of supply will continue to drive prices higher throughout the Central California region.
SMART HOME TECHNOLOGY – Security systems, thermostats, lighting, sprinkler controls, voice assistants, etc., Have gone mainstream as american households continue to adopt smart home technology. And soon you should be able to tell alexa to adjust your Halio “smart-tinting glass” that automatically responds to block out solar heat. Or let the sun shine in.
HIGH-END MARKET – The upper end market (above $7000,000) will continue its trend as a buyer’s market in 2018. Sellers will find success through patience and improving property condition. Since there is a seller’s market in the under $400,000 range – and a buyer’s market in the higher price ranges – the opportunity to move up to the home of one’s dreams has never been better.
INBOUND MIGRATION TO CALIFORNIA – This year, it will be worth watching the potential migration impact of the new tax reform act. In many markets – for example New York, Colorado and Connecticut – limits on the ability to deduct state and local taxes from taxable income may create some outbound migration to more affordable states, such as California. According to a report from United Van Lines, California ranked among the top ten places where people moved to in 2017. What does this say for 2018?!
RENTAL MARKET – Nationwide and on the Central California Coast, renters spent more than ever before on housing in 2017. One bright spot is that the amount they spent grew at a slower pace. Currently, there are around 4,000 new apartment units slated for development on the Central California coast, though likely not all will be built. The lack of entry-level condominium projects has also driven more potential homeowners into the rental market as they have been priced out of purchasing homes. Recent changes in California’s construction defect will be something to watch in 2018, to see if developers begin delivering more affordable housing options to the region.