Market Update | C.A.R’s 2014 Housing Forecast

posted on December 16th, 2013 | filed under: Uncategorized

Trends At A Glance - DecCalifornia home sales and prices to rise in 2014 as market transitions toward primary home buyers.

The C.A.R. forecast sees sales gaining 3.2% next year. Sales in 2013 will be down 2.1% from 2012. (Detached home sales in San Diego County are down 2.2% through November.)

“The housing market has improved over the past year, and we expect this trend to continue into 2014,” said C.A.R. President Don Faught. “As the economy enters the fourth year of a modest recovery, we expect to see a strong demand for homeownership, as buyers who have been competing with investors and facing an extreme shortage of housing return from the sidelines.”

The average for 30-year fixed mortgage interest rates will rise to 5.3%.

The California median home price is forecast to increase 6% to $432,800 in 2014, following a projected 28% increase in 2013 to $408,600. (The median price for detached homes in San Diego County is up 16.6% through November.)

“We’ve seen a marked improvement in housing market conditions in a year with the distressed market shrinking from one in three sales a year ago to less than one in five in recent months, thanks primarily to sharp gains in home prices,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “As the market continues to improve, more previously underwater homeowners will look toward selling, making housing inventory less scarce in 2014. As a result of these factors, we’ll see home price increases moderate from the double-digit increases we saw for much of this year to mid-single digits in most of the state.”

See the Full Report.

posted by Jeff DeChamplain

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Jeff DeChamplain