California Association Of Realtors 2015 California Housing Market Forecast
California Association Of Realtors 2015 California Housing Market Forecast
Good Morning Los Angeles
I read this article from the California Association of Realtors and thought it would be a good read for those of you thinking of buying or selling Real Estate in 2015. I believe they are low on where the mortgage prices are headed , I believe they will go above 5%. However with rates at 3.78% this is the second chance buyers were looking for when they didn't move on the market a few years ago when rates were in the low 3.00's.
On the west side of Los Angeles we have seen a slowing if not a complete halt in price increases with more inventory coming on the market. Sellers are seeing that pendulum starting to swing to the buyers side and perhaps we are now going into what Realtors call the sweet spot where the buy/sell market is reached the middle of the swing over.
However you see the market a buyers or sellers the one thing that is for sure are interest rates are fantastic... got a home in the 3-4 month horizon don't wait
Enjoy the article below. Have questions let me get you the answers you need to make the right decisions for yourself.
C.A.R. releases its 2015 California Housing Market Forecast
California home sales to increase slightly, while prices post slowest gain in four years
LOS ANGELES (Oct. 7) – 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,” released today.
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.”
Appleton-Young will present an expanded forecast Thursday afternoon during CALIFORNIA REALTOR® EXPO 2014, running Oct. 7-9 at the Anaheim Convention Center in Anaheim, Calif. The trade show attracts nearly 8,000 attendees and is the largest state real estate trade show in the nation.
2015 CALIFORNIA HOUSING FORECAST
SFH Resales (000s)
Median Price ($000s)
Housing Affordability Index
p = projected f = forecast
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Author:Robert Schmalz Phone: 310-505-5571 Dated: January 13th 2015 Views: 454 About Robert: ...
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I am Bob Schmalz a California Licensed Real Estate Broker, I am the founder and owner of West Los Angeles Real Estate Group, handling all Real Estate needs from residential to investments To name a few of the cities we cover in West Los Angeles; Beverly Hills, Santa Monica, Brentwood , Pacific Palisades and Malibu are some of the most popular. Our beliefs are that our clients should have the knowledge they need to make decisions in there Real Estate Goals. In this way our clients helps us make the right decisions for themselves.
FIRST TIME HOMEBUYERS:INTEREST RATES BELOW 4% + LOW DOWN PA
"Mr. Robert Schmalz
West Los Angeles Real Estate Group
Keller Williams of Santa Monica
Santa Monica, Ca. 90405
Thank you so much for your assistance in buying a home. I was not sure if the purchase of a Home would be in my best interest this late in my life, but now after having moved in…it is a great feeling.
Being a first time buyer, I would like to share some of my experiences. It is always fun to watch HGTV and see how simple it is to buy a home. And I thought, well that is not that difficult….Man was I wrong. Many of my homeowner friends told me all the weird things they encountered, but I believe my home purchase topped it all. -And in the midst of it - Bob ….by my side every step of the way…calming me down when angry, motivating when frustrated, happy hour when celebrating. He cared as I have never experienced before, ask and you shall receive.
Here is the thought process that led to the biggest purchase of my life.
There is probably no better time to buy then now. Will the market drop further? Maybe. However, by the time you decide the market could be on the way up again.
Why buy and not rent again? Rent would be close to the same amount of the mortgage without the benefits.
How did I pick Bob to be my realtor?
I interviewed a handful of real estate agents, and Bob was interested in me as a person, not just a client. Over the entire “buying process", handling my requests to see property on short notice...and I mean short notice (sometimes within a few hours), working closely with the seller's broker, mortgage broker, bank, escrow, Bob was there to assist and handle it.
Bob was reachable for me at any time and his communication was immaculate. We exchanged emails and text messages until late into the night.
Especially as a first time buyer, you need someone that you can trust, someone with integrity. It is a scary and stressful undertaking when you buy. Bob was able to make that process smooth and handled any emotional difficulties well. I doubt anyone else could have handled it any better.
With great appreciation,