California Central Coast Housing Market Outlook 2014
The
California Central Coast Housing Market for 2014 is looking much brighter. Both Sellers and Buyers can remain optimistic in the coming year. There are several key points to consider, depending on which side of the transaction you are, buyer or seller.
The California Association of Realtors (CAR) is predicting much better housing market in 2014. In a recent report they stated that "2013 was a year when the housing market transitioned from “investor sales” to “primary home sales”. The share of investor sales is expected to decline as the number of bargain properties continues to decrease, while the share of primary home sales is expected to improve as the economy continues to grow."
What does this mean for the consumer? Most importantly it means a stabilization of the market and a chance for sellers to start seeing some appreciation in their home values. For buyers it means that "the bottom" is likely past us. That's not to say that there aren't deals to be had, just they may be harder to come by and with more competition. Investors, who accounted for much of the buy up in distressed properties, are now looking at smaller margins, so they are less likely to compete for some homes - giving 'regular buyers' a better chance.
Inventory and interest rates will be the key factors to watch this year. Current low inventory and low rates coincide with higher demand, which drives up pricing. Investors that scooped up distressed properties at bargain prices are now stepping back. And home owners are seeing more equity. Once investors equity grows and sellers whose homes have appreciated decide to sell and cash in, inventory will rise.
With tighter lending standards it's unlikely that there will be a rapid run up in prices as was seen prior to the market crash. Rising interest rates and more inventory may also play a part in maintaining a balance in the market. However, CAR noted in a recent report that "... the median price for California existing single family homes is projected to increase only six percent to $432,800 in 2014." I think that's a pretty good increase!
What does this all mean? Good news for sellers who lost so much equity in the downturn, bad news for buyers who will be paying more for a home than in recent years past.
California is a little outside of the norm when compared to the rest of the country in that demand plays a major role. The Central Coast of California in particular is one of the most beautiful and desirable places in the country to live, even the world for that matter. There will always be someone willing to pay the price.
For buyers in today's market, it would be wise, if you are planning on living in this area for a while, to considering buying and getting in on the appreciating market.
If I can be of assistance in helping you understand the market from a Buyer or Seller perspective, give me a call.
Find the Latest Listings on The Central Coast California
