According to a recent report from the California Association of Realtors (CAR), January got off to a great start with an increase in pending home sales, something not seen since 2013. While December saw a seasonal slowing in sales, there was a positive outlook going in the new year, and the results show that home buyers are ready to purchase a home in California. According to the latest forecast on real estate from CAR, the improving economy within the state, along with greater job growth and more new homes being built, 2015 overall is expected to be a better year for the real estate market.
Reviewing the data released by CAR, pending sales in all of 2014 rose 2.6% compared to 2013. While equity sales (non-distressed properties) were lower at the end of the year due to seasonal slowing, they have made up more than 80% of California’s total sales since July 2013. Equity sales also rose up to 90% of all sales since the middle of 2014 overall. Distressed property sales were down in 2014 approximately 33% for the year, but interestingly these sales increased in November by 10.2% and in December by 9.5%, making up almost 20% of the property sales for the end of 2014. Home prices look to be stabilizing with a decrease in homes selling above the asking price. In the first quarter of 2014, 46% of homes were sold above the asking price, but by the end of the fourth quarter this dropped to 24% of homes sold.
In looking ahead to the rest of 2015, median prices are expected to increase, continuing the trend seen in 2014. There was a 9.8% increase in median selling prices in 2014 compared to 2013, and CAR projects that the median price will continue to increase this year around 7.1%. This is in line with what often affects the real estate market, economic factors, which are also provided by CAR in their market trend analysis reports. Job growth is expected to hold steady with a 2.4% in growth, compared to a 2.0% growth seen in 2014. The unemployment rate is predicted to decrease another 6.7%, from the 7.5% decrease experienced in 2014. 2015 is in line to be a strong year for Real Estate. If you are ready to sell or buy your home, the Ray Marquez can help you find the right home for your lifestyle. We are here to provide you with our exceptional and dedicated services to turn your home dreams into reality. To learn more about how we can help you, contact us directly at 925-575-7605, or you can email me at firstname.lastname@example.org.