California Real Estate: What To Expect in 2013 and 2014
The California real estate market was one of the worst hit in the nation during the real estate crash, but it’s been showing real improvement in the last year. For 2013 and 2014 the results may look even better, though they probably won’t be going back to pre-crash prices any time soon.
Real estate analysts believe that the California market will continue recovering through 2013 and that 2014 will be an ideal time for many homeowners to sell. Most of this analysis is based on research data about the current housing prices as well as the unemployment rates in California. Despite the effects of the housing crash, the low mortgage rates and slowly recovering economy is encouraging buyers to go back into the market.
However, there are some things that may cause the market direction to take another plunge instead. If the local economy doesn’t do as well as projected, or gets even worse, it’s the housing market that will suffer. While unemployment rates have gone down, unemployment is an exceedingly difficult thing to predict. If the rates go up instead of down as predicted, then the housing market will probably go with it. Since the housing market is a complex one, it’s impossible to predict with complete accuracy whether it will rise or fall.
Still, those who are nervous about what the future will hold will probably not do well selling their homes now. The California real estate market still hasn’t improved enough to make it a good time to sell, and many seller’s who purchased their homes during the real estate boom are still underwater and would be selling at a loss. For those who are now underwater in their mortgage, waiting two years to see whether the market goes up or down may make a large difference in their return.
It’s likely that the market recovery will continue, but the process is going to be slow and those with jumbo mortgages purchased at the height of the bubble may always be on the losing end. For buyer’s, however, now may be the ideal time to buy. The low mortgage interest rates make it an ideal time for a new home purchase, along with the market still being in recovery. Future years may find home prices, and mortgage rates, both going up.
Article Copyright ©2013 – All Rights Reserved Patrick Belhon (patricksellshomes@gmail(dot)com)