Realtors expect home prices to grow the most in California, Florida and Texas

As the first second quarter of the year is near us, results of 2014 real estate market report are in.  Overall, NAR members expect a slowdown from the 2013 big growth.  Good news, right? Good news in certain states. Home prices are expected to increase over the next 12 months in California, Texas, Florida, and other states with a median price increase of 4%.  

A home with a purchase price of $300,000 today could be $312,000 in a year from now. 

Keep in mind that price movements depend on the local housing demand and supply, and the access of mortgage financing.

Search homes at www.BetancourtRealEstateGroup.com/properties or call us (818) 384-5928 to discuss your options in the real estate market.

Source: HousingWire.com

Economics Revises Home Price Forecast

Here's a recall on the real estate market forecast for 2013.  This news is 'BIG' since we are only three months into 2013.  

Ready?

Lead Capital Economics had previous forecast a 5 percent price gain for this year.  NOW they are revising their prediction to 8 percent price gain!!!  Due to the strong demand and tight inventory,  existing home sales and great mortgage rates are causing a shift of a buyers market to a sellers market.  With an increase in home prices will also have some real estate investors to consider leaving the market or holding on to properties a bit longer.

Will this help with the strict lending? Perhaps. Currently, mortgage rates have slightly risen but could fall again. 

Another big change is the increase of foreclosure homes as opposed to short sales are becoming more common and the price difference is a 12 percent difference as opposed to last year's 30 percent. 

This will be one interesting year in real estate.

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A Look Back: California Home Median Prices Since 1970

With this new seller's market in hand, let's rewind the clock and take a look at California's median home prices since 1970s, 1980s, 1990s, 2000s, and 2012.

Shocking...isn't it.

Individual Buyers Dominate Home Sales as Opposed to Investors

Another sign that the housing recover is more sustainable than before.  Mortgage applications were at all time high in January.  For the last couple of years, investors with cash have driven the recovery of the housing market.  But in the last five months, application for new mortgages have risen and now regular buyers are having to play a bigger role in the housing recovery. 

This is the significant change the market has been waiting for! Why? Many in the real estate industry are worry that once home prices rise to a point where it's not as worthwhile for investors to buy, prices would drop off.  Now that individual buyers dominate home sales, we may see a more sustainable recovery under way. 

This doesn't mean that investors have loosen their grip on the market.  Now,  investors are buying homes at an extremely affordable price with plans to rent them out and flip them for a profit when the market is right. 

With these news, individual buyers will likely play a larger role in the housing recovery however the change will be a slow one.  The importance is that it has started to happen. 

Source: CNNMoney.com