Transition in Multifamily Housing

Reports from real estate experts are finding that there is an upward trend of townhome sales that will begin as soon as 2014 according to an article in Press Enterprise.

The sales in October saw a 4.4 percent falter in condo sales, while October saw a 3.3 percent in the Southern California area. Between 20-34-year-old home buyers will be the main demographic according to the article. Young adults will make the move, as employment is rising in cities such as San Diego and we’re distancing ourselves more from the recession.

In counties such as Riverside and San Bernardino, single-family home price appreciation will rise in the year-to-year gain of 20-30 percent. As a whole, the two counties existing condo and townhome sales are up 9.2 percent according to DataQuick.

Condo and townhouse sales in markets such as Riverside, Corona, Chino, Temecula, Murrieta, Moreno Valley, San Bernardino, Rancho Cucamonga, Ontario and Fontana really slowed in 2012, but in the first six months in 2013 rose to 2.7 percent according to the Press Enterprise.

This increase points to 31 sales to 1,178 units. The 5,953 sales, since 2005, has not reached that mark when 8,776 sales were registered over the same 10-month period.

A population of people who have retired, students and low-income earners has the largest multifamily community with price growth. With the real estate in Southern California the prices of condos have ranged between $137,000-218,000 in the first six months in 2013, as markets are predicted to grow over the next few years according to the article.

Not only will the price increase, but sales will also rise in the 2014. Inventory is coming in higher numbers as well, while less homes are being seized by the bank.

The higher prices in rent are playing a part in the situation. According to a report in Beacon Economics, ‘buyers of existing single-family homes would pay $983 per months for housing in San Bernardino County, while a homebuyer in Riverside County would pay $1,260 per month.’

“If we don’t see another debacle in Washington, D.C., early in the year, the economic recovery stays on track and mortgage rates remain relatively low, it’s likely single family home prices will increase,” said DataQuick analyst Andrew LePage to Press Enterprise.

“With those prices on the rise, I think we’ll see relatively healthy condo sales because some people will be priced out of the single-family home market.”

By Linda Moore

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