If 2014 follows the same pattern as 2013 (and any year before that), you can expect the following to happen:
– Inventory will continue to gradually rise until the fall season
– The peak of activity (homes selling) will be between April and August.
– Home sales will decline after August
If you’re like most homeowners, you’re excited about your increased equity. Many homeowners who were barely “break even” or upside down with their loan are now wondering if they’ll have enough after selling to apply toward a downpayment. As values continue to rise and the economy improves, look for an increased number of “move-up” homeowners looking to sell their existing home to purchase a larger one.
Here’s the California Association of Realtors (CAR)’s forecast for 2014:
Keep in mind that we are already 1/4th into 2014. As multiple offers fuel rising values, look for an uptick in supply from the move-up sellers who’ll likely sell contingent.
The big difference between 2013 and 2014? Don’t expect prices to go up 28% in California. As the chart above shows, CAR expects a 6% gain.