According to the California Association of Realtors, the median home price is forecast to increase to $478,700 by the end of 2015 from $455,000 in 2014.
More homes are expected to be available on the market for purchase by potential owner/user consumers in 2015 as investors have been driven away by the large price appreciation of the last few years. The California Association of Realtors sees a return to a more normal traditional home buyer market with home sales rising modestly and prices flattening out in 2015.
As concerns interest rates, the average 30 year fixed rate mortgage will rise only a minimal amount to about 4.5 percent and is expected to remain there for the entire 2015 calendar year. The continuance of these historically low interest rates should help to encourage prospective buyers to enter the home ownership market or trade up.