Before California can step into its positive forecast for the next two years, it has several hurdles that it needs to overcome. While the Golden State is faring better than the rest of the nation, according to the Real Property Report from PropertyRadar, housing affordability and tough market conditions are still impeding sales.

A couple weeks ago, HousingWire wrote on the 5 awesome facts impacting California’s housing future, which include one disclaimer. “One of the biggest problems facing California is the rapidly rising cost of housing, driven by a lack of new supply.”

But to the Real Property Report, this problem is definitely hindering the strength of the California recovery. 

“Lackluster sales volumes so far this year should come as no surprise given the fact that in many California counties houses have simply become unaffordable,” said Madeline Schnapp, director of economic research for PropertyRadar. “The decline in affordability in concert with the rapid decline in lower priced distressed properties for sale has exacted a toll on demand.”

The previous HousingWire article cited a report from Beacon Economics that said California’s economy will continue to steadily improve throughout the life of the state forecast in 2019. 

“Every metropolitan area in California has now returned to job growth,” says Jordan Levine, Beacon Economics’ director of economics. “Although the jobs and broader economic recovery has been more robust in some areas of the state than in others, the overall numbers are indicative of real, sustained improvement statewide.” 

But first, California has to overcome these 3 hurdles. (Click next page to see full list)