2016 California
Real Estate Outlook

Six Themes to Navigate the New Normal

1. Home Prices
Values will return to a period of steady annual appreciation, approximately 4-6 percent.

2. Inventory Levels
Rebalancing will continue across markets returning to less volatile and more stable inventory levels.

3. Mortgage Rates
The federal government will continue to watch inflation and economic growth while calibrating the markets with small rate hikes in 2016.

4. Rents
High rents will level off and continue to hold steady with more new inventory coming to the market.

5. Wildcards
While many geopolitical factors such as economic crises, terrorism, and major election are at play, the U.S. will still be viewed as a beacon of free market hope and investment safety.

6. Overall
With the federal government as the steward of the economy, and macro-economic forces pointing towards modest growth, the housing sector will be a bright spot in the 2016 economic landscape.