CAR’s housing forecast for 2014
Despite a recent slowdown in the California real estate market, the C.A.R. is confident the market will continue to gain ground next year.
In the C.A.R.’s 2014 California Housing Market Forecast, sales are expected rise by 3.2% next year, reaching 440,000 units, higher than 2013’s previous forecast of 430,300. In addition, 2013 is expected to close out the year with 2.1% less sales than 2012, which saw single-family existing home sales totaling 439,400 units.
30-year fixed mortgage rates are predicted to rise further next year, but not at the pace seen recently and they are expected to cap out at 5.3%.
The median home price in California is also forecasted to rise, reaching $432,800, and rising by 6%.
Further improvement of the market could be attributed in part to the return of prospective buyers who had been pushed out of the market by low inventory and aggressive investors, increasing homeownership demand as a result. Housing inventory is also expected to become less scarce next year, as more homeowners come out from underwater and choose to sell.
Looking to buy or sell a home in 2014, in the Orange County or Los Angeles markets? Contact Blue Pacific Property – we can help!