1. Price gains will moderate - Orange County home prices shot up over 22% in 2013. Local economists and experts forecast home prices to stabilize in 2014 with lower price gains. Cal State Fullerton economists say that price appreciation will be in the range of 5 to 7 percent this year.
2. Increased inventory of homes for sale - More homeowners will list their homes for sale this year. The number of homes on the market was extremely low in early 2013 and then doubled by November while climbing to more than 6,000 actives. Local experts expect this trend of more homes for sale to continue.
3. Improving economy will create more buyers - Cal State Fullerton and Chapman economists predict that Orange County employment will increase by 35,000 jobs this year. This trend together with other factors will result in increased demand for housing.
4. New home sales will increase - Orange County new home building was way up last year 2013 and is now back at pre-recession levels. The number of new homes to be built and sold is expected to go much higher this year in 2014.
5. Mortgage rates to rise - Rates for 30-year, fixed mortgages, are likely to go up this year and average somewhere in the 4.9 percent to 5.3 percent range, some experts say. That's still historically low and amazingly good for buyers. However, rates will be higher than during the past 2.5 years.
6. Getting home loans might be more challenging - Tougher U.S. government lending standards go into effect today on January 10, 2014, and will apply to loans that institutions plan to sell to Fannie Mae and Freddie Mac and on the “secondary” market.
7. Apartment rents continue rising - Rents have been going up at Orange County for the past three years, and experts predict this will continue. When apartment rents go up, people who want to own their homes and are qualified to purchase will see advantages of home buying.
We look forward to a bright 2014 for Orange County real estate markets with continued movement toward more normal, positive conditions.
No comments:
Post a Comment