California Projected to Post the Largest Home Price Gain in the U.S. by Next Summer

October 2, 2018 by Pacific Union • Posted in Featured PostsMarket Forecasts

  • California home prices are expected to increase by 9.1 percent by July 2019.

  • Golden State homeowners gained an average of $49,000 in home equity between the second quarter of 2017 and the second quarter of 2018.

  • The San Francisco metropolitan area has the lowest number of underwater homes in the U.S., accounting for only 0.5 percent of properties.

Golden State homeowners once again enjoyed the largest equity gains in the country in the second quarter, and that trend appears poised to continue, as California’s is projected to lead the U.S. for annual home price appreciation by the summer of 2019.

That’s according to CoreLogic’s latest Home Price Index, which says that California home prices increased by 8.2 percent year over year in July and by 11.0 percent in the San Francisco metropolitan area. Although four other states had larger annual price gains, California is expected to lead the nation by July of next year, with forecast growth of 9.1 percent

Continued price growth over the past few years has helped line the pockets of California homeowners. CoreLogic says that the average Californian with a mortgage gained $49,000 in home equity between the second quarter of 2017 and the second quarter of this year.

In a statement accompanying CoreLogic’s latest The MarketPulse report, company CEO Frank Martell said that the number of underwater homes continues to drop nationwide, with the biggest declines in areas with strong price growth.