Los Angeles-area home prices will rise by 6.9 percent and the number of home sales will increase by 6 percent.
2017 will be a sunny year for the Los Angeles metro area’s real estate market, according to a new forecast from Realtor.com.
The real estate information site ranked Los Angeles second out of America’s 100 largest metro areas in its forward-looking report on national home sales trends.
Economists at Realtor.com are predicting that home prices and existing home sales will make big gains next year. When taken together, those metrics signal a healthy local housing market over the next 12 months.
The forecast predicts that Los Angeles-area home prices will rise by 6.9 percent and the number of home sales will increase by 6 percent in 2017. Other cities scored better than Los Angeles in each category, but expectations of strong performance in both drove the local market close to the top of the overall rankings.
Some factors contributing to the optimistic outlook for Los Angeles are relatively low unemployment, large populations of millennials and baby boomers, and solid home price recovery since the housing market crash in 2008, Realtor.com economists said. According to the latest Zillow Home Value Index, home prices in the Los Angeles area have grown 8.3 percent over the last five years and are currently just 3.2 percent below their peak in August 2006.
Nationwide, Realtor.com predicts that home prices will grow by an average of 3.9 percent and sales by 1.9 percent in 2017. The Phoenix metro area topped the list, with expected sales price and volume growth of 5.9 percent and 7.2 percent, respectively.
With the exception of Boston, which placed third, Western and Sun Belt metros dominated the top ten spots in the forecast:
2. Los Angeles
5. Riverside, California
10. Portland, Oregon