Housing Prices rose 6.8% from last year but sales fell 3.2%.
That shows a market that is still tight and getting tighter as prices rise. Less people can afford the average house here. Wages have to grow.
The good news is that California’s economy is expected to grow faster than the rest of the country. Our unemployment rate is supposed to drop to 5% in early 2017
According to a new report from ucla, personal income will grow 3 % in 2016. Wages and salaries should grow 5.7%. If that happens we will be right in line with housing price increases.
