It has been an incredible time. Following 1991, the worst year in housing, we are now entering our tenth year of a national recovery. California is the 7 th largest economy in the world. We have good job growth and more productivity than ever before, low unemployment and almost no inflation. The unsold inventory of houses in California and in San Luis Obispo County in particular remains at historic low levels.
Construction is way below what is needed to meet the demand.
This lack of supply and adequate new construction will drive up home prices even further, according to Appleton-Young. However, she said, Hold on to your hats. San Luis Obispo County may see increases continuing in double digits even though the rest of California goes to single digits. We are just now feeling the slight slowdown in the economy as a result of the Fed s six interest rate increases. These slowdowns are occurring in the right areas, to keep inflation in check, and help hold interest rates down.