Although home sales have been lackluster through most of 2014, housing experts are forecasting strong activity during the rest of summer and for the remainder of the year. This is due to three factors:
- Shift from seller’s to buyer’s market: This power shift is resulting in more balanced pricing. Sellers are lowering listing prices to meet buyer’s expectations of better deals.
- Slowdown in price appreciation: Home-price growth has dropped across the majority of Southern California and is projected to remain relatively flat. This is a welcomed change from the steep 11% appreciation some counties endured in 2013.
- Income growth: White collar jobs have experienced a 17% increase in the professional services industry since the recession. And overall employment is up 8%.
The slowdown in price appreciation coupled with job growth and increased wages will provide a much needed respite—allowing salaries to catch up with home value gains. This will result in a more balanced housing market, improving home sales.
Sr Loan Officer , JMJ Financial
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