As the seasons turn and 2013 winds down, it is in our nature to look forward into a new year. What can we leave behind, what will be next, and what opportunities will arise? We all have our own answers for ourselves, but the California Association of Realtors (C.A.R.) has an answer that home sellers should all be happy to hear regarding real estate – a healthy growth for sales and prices is projected for 2014.
“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. The C.A.R. foresees a 3.2 percent gain in sales next year, up from 430,000 homes sold in 2013 to 444,000 projected in 2014. The median home price is forecasted to increase 6 percent, up to $432,800.
Over the past four years the economy has been slowly recovering, and it is projected that homeownership will now become a highly sought after desire. C.A.R. expects the growth in the U.S. GDP to be up 2.8 percent in 2014. As the economy rises, buyers have less competition with investors and loans are more readily available. The growth of the economy and the fall in unemployment, also predicted, will naturally boost sales.
“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. She continues, “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.”
As this report was released, I can’t help but be excited for the rise of the economy, the fall of unemployment, and the positive predictions for real estate in California. Does this news have you excited to begin to look for your new home? Browse luxury Marin properties for sale on my website, and contact me with any questions or inquiries. Cheers to the future!