The California Association of Realtors (C.A.R.) recently released their annual California Housing Market Forecast, and it contains some wonderful news for traditional home buyers.
The forecast reports that with more available homes on the market for sale, California’s housing market will see a decrease in investors as home sales will see a slight increase, with prices flattening out in 2015. This means that buyers looking to purchase a home will face less competition from real estate investors.
According to the forecast, there will be an expected increase in home sales of 5.8% next year to reach 402,500, which is considerably higher than the projected 2014 figure of 380,500.
C.A.R. President Kevin Brown attributes stringent underwriting guidelines and double-digit price increases over the past two years as the major contributing factors that have led buyers to delay purchasing a home. Now with home price gains slowing next year, buyers who have been saving for a home purchase will be in a much better financial position.
Brown also mentioned the numerous programs available to buyers, such as FHA loans, that allow buyers to put down as little as 3.5 percent toward their down payment. This, coupled with the continuing economic strengthening, will lead to a healthier market.
“With the U.S. economy expected to grow more robustly than it has in the past five years and housing inventory continuing to improve, California housing sales and prices will see a modest upward trend in 2015,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While the Fed will likely end its quantitative easing program by the end of this year, it has had minimal impact on interest rates, which should only inch up slightly and remain low throughout 2015. This should help moderate the decline in housing affordability we saw occur over the past two years.”
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You can read the full C.A.R. 2015 California Housing Market Forecast at their website.