Page 6 - 2018 Forecast_Neat

Executive Summary

By The Bishop Real Estate Group

• 2018 California Economy Most Likely Outperforming
Nation

• CA Home Sales and Price up in 2017 and again in 2018

• 2017 CA Median Home Price projected +7.2%. 2018 is

forecast at +4.2%

• YTD 2017 Median Price Increase: Placer+7.2%, El
Dorado +14% Sacramento +8% Nevada +9%

• Regional Price Growth Still Ahead?

• Placer and Sacramento Median Price below Peak
Year(2007) by -12.5% and -11.5% respectively.

• While Some Bay Area ‘Feeder Market’ counties
over Peak Year by +30%

• Housing Affordability Remains More Favorable in Sac
Region vs State as a whole

• Inventory throughout CA remains on Downward Trend

• More Competitiveness by Price in Lower Price Ranges

• Net Cash Gain to Sellers is Highest since 2006

• 2017 30 Year Mortgage Rate at 4%. 2018(f) Rate at 4.3%

• Among Challenges: Affordability in Higher Cost Regions;
Boomers Not Prepared for Retirement; Millennials with
Student Loan Debt; Tax Reform

6 The Bishop Real Estate Group • www.TheBishopRealEstateGroup.com