Continued Improvement in Housing Market in 2014
By most measures, 2013 has been a banner year for the Bay Area housing market. Sales continue to rebound at all price levels. The median sale price overall climbed 15–25% from a year ago, depending on the city. In many communities, there aren’t nearly enough good listings to go around, often resulting in multiple offers and sales over the asking price.
So what do we do for an encore? According to the California Association of Realtors, we’re likely to see continued improvement in 2014 – albeit not at the elevated levels we’ve seen in 2013. The association is calling for a 3.2% sales gain statewide next year and a 6% boost in the median sale price.
CAR economists are predicting that inventory levels will rise next year and that steadily improving home prices will mean more homeowners who are “under water” will now be able to sell. Then all the buyers who may have been competing with investors and
facing an extreme shortage of available housing will return from the
sidelines.
As much as sellers are enjoing the soaring prices and multiple offers of 2013, we can’t sustain those conditions for long while maintaining a healthy housing market. A more balanced market in 2014 would make for a Happy New Year for both buyers and sellers!
For more information on the economic market in general, check out this Monthly Economic Outlook.
Local Market News
There are still multiple offers on many properties, due no doubt to the Peninsula’s continuing tight inventory. Companies holding their IPOs in the U.S. this year have posted an average 30% gain in share price, according to Dealogic. Between the IPOs, Chinese buyers moving money out of their country and investing here, and very confident builders buying up any land they can find, it is a land rush. There is still extremely low inventory in many Peninsula cities and demand is strong. Here in Portola Valley, there are just 14 homes currently for sale ranging in price from $1,699,000 to $13,900,000. Many buyers have been priced out of the market but most of them are hanging in there.
Although all signs point to a continuing strong market, we know how quickly things can change. There’s still time to get your home prepared, on the market, and sold before the end of the year. It takes experience and know-how to make this happen for you. Having sold more homes in Portola Valley than any other agent, I can make this happen for you!
Happy Thanksgiving!
Attention: Flood Insurance policy Holders!
Don’t Pay Your Renewal Bill Late! It Will Cost You Lots Of Money!!! All property with a federally insured loan requires flood insurance. If you are late, the new 2012 flood insurance rules will force you to get an elevation certificate ($600-$2,000) and pay 33% higher rates immediately. The new rules under The Biggert Waters Flood Insurance Reform Act of 2012 will raise everyone’s rates for flood insurance, but the increases will be phased in over time for people with existing policies that started before July 6, 2012. The goal is that everyone will eventually pay the same rates. Here is how it affects you... read article
Happy Thanksgiving!