2015 Housing Market Forecast

2015 CALIFORNIA HOUSING MARKET FORECAST
With more available homes on the market for sale, California’s housing market will see fewer investors and a return to traditional home buyers as home sales rise modestly and prices flatten out in 2015, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2015 California Housing Market Forecast.”

 

The C.A.R. forecast sees an increase in existing home sales of 5.8 percent next year to reach 402,500 units, up from the projected 2014 sales figure of 380,500 homes sold. Sales in 2014 will be down 8.2 percent from the 414,300 existing, single-family homes sold in 2013.

“Stringent underwriting guidelines and double-digit home price increases over the past two years have significantly impacted housing affordability in California, forcing some buyers to delay their home purchase,” said C.A.R. President Kevin Brown. “However, next year, home price gains will slow, allowing would-be buyers who have been saving for a down payment to be in a better financial position to make a home purchase.”

“Moreover, prospective buyers should know that it's a misperception that a 20 percent down payment is always required to buy a home. There are numerous programs available that allow consumers to buy a home with less down payment, including FHA loans, which lets buyers put down as little as 3.5 percent,” continued Brown.

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 3 percent in 2015, after a projected gain of 2.2 percent in 2014. With nonfarm job growth of 2.2 percent in California, the state’s unemployment rate should decrease to 5.8 percent in 2015 from 6.2 percent in 2014 and 7.4 percent in 2013.

The average for 30-year fixed mortgage interest rates will rise only slightly to 4.5 percent but will still remain at historically low levels.

The California median home price is forecast to increase 5.2 percent to $478,700 in 2015, following a projected 11.8 percent increase in 2014 to $455,000. This is the slowest rate of price appreciation in four years.

“With the U.S. economy expected to grow more robustly than it has in the past five years and housing inventory continuing to improve, California housing sales and prices will see a modest upward trend in 2015,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While the Fed will likely end its quantitative easing program by the end of this year, it has had minimal impact on interest rates, which should only inch up slightly and remain low throughout 2015. This should help moderate the decline in housing affordability we saw occur over the past two years.”

“Additionally, the state will continue to see a bifurcated market, with the San Francisco Bay Area outperforming other regions, thanks to a more vigorous job market and tighter housing supply.”

 

Information provided by California Association of Realtors

Posted on December 10, 2014 at 1:52 AM
Alison Peterson | Category: Home Buyer's Tips, Home Seller's Tips, Housing Market, How's The Market?, Military Relocation, North County San Diego Real Estate, Real Estate Rancho Carrillo, Relocation, San Diego Real Estate | Tagged , , , , , , , , , , , , , , , ,

Can a Deadline Strategy Sell Your Home Faster and For More Money?

 

 

 

 

We all know it's a Seller's Market here in North County San DIego.  In fact, it's a Seller's Market across the country right now.  Why?  Because so many Seller's have been waiting for home values to go up before listing their homes for sale.  Buyers have been waiting for 5 to 7 years for market inventory to improve.  That time is now and has been on the rise for the past 9 months.

Multiple Offers and Bidding Wars are back.  Good for Sellers and tough for Buyers. 

Sellers who want to get the most money out of their homes in the least amount of time are using a Deadline Strategy.  This is where the listing agent cites a specific deadline for offers in the listing and on marketing materials.  Most deadlines are written in the confidential agent to agent remarks and not in the public listing.  A home listed and entered on the Multiple Listing Service on June 1 could have a Deadline of June 7 for incoming offers.

Why does this get results and high returns for the Seller?  Setting a Deadline shows confidence in the listing price and the property value.  It also moves the Buyers to help them focus and take action to write their offer and usually at their highest and best.

While the Seller could receive an offer they can't resist before the Deadline and accept that offer, they usually wait to see all offers submitted by the deadline.  The Seller is not bound by the Deadline and can accept whichever offer most meets their terms of price, escrow closure and the strongest buyer.

Alison Peterson, Realtor

 

Posted on June 2, 2014 at 5:52 PM
Alison Peterson | Category: Home Buyer's Tips, Home Seller's Tips, North County San Diego Real Estate, Real Estate Rancho Carrillo, San Diego Real Estate | Tagged , , , , , , , , , , , , , , , , , , , , , , , ,