2014 Ready for takeoff – Interest rates the only headwind
After a modest increase in 2013, buyers seem to be looking to fulfill their new year’s resolution to buy a home this year. December was seasonally slow as is often the case due to the holidays, but January is off to a fast start and buyers have come in and started bidding properties up in earnest. Rates have drifted higher, but without any panic or spiking which has sellers feeling comfortable with pricing their properties above the last comparable and being patient. Due to nice predictions for a great year and trending economic indicators, the only headwinds look to come from increasing interest rates, which make homes less affordable for buyers. It is predicted that the pace of the taper (reduction in quantitative easing and buying of mortgage bonds by the Fed) will start picking up as the stimulus is no longer needed due to the robust pickup in economic activity. The charts below were created for Central Huntington Beach, but paint a picture that is common for most of Orange County. Recently, bidding wars have begun to occur for the prime properties, but look for that to subside a bit as rates tick up and more inventory comes on board into the spring. In any case, if you are looking to move up or downsize, now is presenting the right amount of balanced liquidity to help you sell your current residence and find a new home.
For Sale / Sold by Price
Source: Clarus Market Metrics zip code 92647