7 Top Orange County Real Estate Trends to Look for 2014
The housing market in Orange County “staged a spectacular recovery” last year as home prices soared with double digit gains.
2013 price appreciation through November was 22.6 percent year to date, the largest increase in nine years, according to DataQuick Information Systems.
The new year 2014 will see more homes for sale with fewer investors in the mix and more buyers putting roofs over their own heads. Home prices should stabilize this year, as most experts expect home prices to rise at a slower and steadier pace.
Here are the seven top Orange County real estate trends to look for in 2014.
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.
By Christi Long – Professional real estate representative and Realtor, Coldwell Banker Residential Brokerage, Newport Beach and Orange County, CA – CAL BRE 04138859. Source of some information is OCRegister.com and its article on January 4, 2014.