Rising Sales and Prices Predicted for California Housing Market in 2014

California Housing Market in 2014

Rising Sales and Prices Predicted for California Housing Market in 2014

Positive Outlook For California Housing Market in 2014

A recent article in the Los Angeles Daily News, reported that the California housing market in 2014 will continue to bounce back this year. Distressed homes will play less of a role in the real estate landscape. “The 2014 California Housing Market Forecast from the California Association of Realtors expects sales of existing, single-family homes to rise 3.2 percent next year, reaching 444,000 units.”

The housing market improved in 2013 and is expected to continue on this path in 2014. “The Golden State’s median home price is forecast to rise 6 percent to $432,800 in 2014. That follows a projected 28 percent annual increase in 2013 to $408,600.”

Home supply continues to increase making it possible for first time homebuyers and those formerly not able to compete with all-cash offers and investors. “The increasing supply of homes for sale will ease the price increases while helping first-time home buyers make a deal…”

As far as mortgage rates, rate will rise this year, but still remain at a low level. “…the 30-year fixed mortgage interest rate will rise to 5.3 percent next year, still a historically low level. Currently, the rate has been around 4.2 percent.”

The market however is still volatile. “Some of the wild cards for 2014 include federal, fiscal, monetary and housing policies as well as the housing supply and the Federal Reserve’s actions.”

While the California housing market in 2014 is looking up, only time will tell how 2014 will fare. Consult with a qualified and experienced California real estate agent to help navigate the ever-changing local real estate market.

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