Tendencies within the California housing market have resulted in pundits predicting that fewer investors and more traditional home buyers will be pushing the sector forward next year as prices flatten and the sales of homes rise slightly. Additionally, an increase in the number of available homes for sale has also contributed to this belief. The 2015 California Housing Market Forecast by the California Association of Realtors (CAR) is expecting a 5.8 percent increase in sales, culminating with 402,500 units, a modest jump up from 2014's 380,500 sales.
The news from CAR is especially positive as 2014's predicted final tally will mark an 8.2 percent drop from 2013's 414,300 sales.
"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. 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," CAR President Kevin Brown says, according to West Side Today.
Other contributing factors to the forecast are that nonfarm job growth is expected to grow by 2.2 percent while the state's unemployment rate should continue to fall from 7.4 percent in 2013 to 6.2 percent in 2014 to 5.8 percent in 2015. Also, while the average rates for 30-year fixed mortgages may raise to 4.5 percent, they will still be historically low.
One of the most interesting factors for California's housing market specifically is the projected prices of the homes. With Trulia's Bubble Watch identifying six out of the top 10 most overvalued sectors as Californian, the projected median home price of $478,700, the result of a 5.2 percent increase, will be closely watched though this is the slowest rate of price appreciation in four years.
The present trends along with the modest but constant changes in the housing sector exemplify the need for dependable valuations. Utilizing e2Value's straightforward online property appraisal services and replacement cost valuations consistently provide data that you can rely on.