by Dan Christian in Blog.
2013 was a great year for Los Angeles real estate, and 2014 is beginning to rise above the horizon promising a positive outlook for buyers who may have missed out before the calendar flipped over to the new era. Although prices are projected to rise, they will do so only slightly. According to ‘CNN Money’ 2014 home prices are only expected to rise roughly by half the rate they climbed to just the year before. David Stiff chief economist at CoreLogic Case-Schiller states that, “for a sustainable recovery you want to see more balance between buyers and sellers”, and with a forecasted elevation of 6.8 percent in the median home value of 2014, the market is looking strong and secure.
Buying in Los Angeles
Los Angeles is a great city to live and work in. With its rich mixture of cultures, outlets to the arts, leisure activities and gorgeous beaches, living in a beautiful neighborhood with a short commute to Downtown is ideal to almost anyone. Westchester, CA homes for sale are highly desired for their excellent school districts, short commute times to central areas, and the neighborhood is safe with low crime rates. According to the 2013-2014 LAEDC Economic Forecast & Industry Outlook Los Angeles homebuyers have a lot to smile about in 2014, as the number of home sales and their average costs soared well above the median home price. Though 2014 predicts slight increases, the forecast for the year to come shows every indication that we will still be entering a buyer’s market, and Los Angeles homes are at the peak of “Buyer’s Paradise”.
Relationship Between Investors and Buyers
Real estate investors are predicted to decline in 2014’s numbers. As the market is improving there are fewer distressed homes to flip for a profit. According to the Campbell Inside Mortgage Finance HousingPulse Tracking Survey, the number of residential investments took a dive from 23 percent at the start of 2013 to 17 percent by September. So what does this mean for the average homebuyer? With the massive shift in inventory 30-year fixed-rate mortgages are predicted to increase by more than half a percent. This increase is healthy and certainly nothing to fret over. Although 2014 will see slightly higher rates the numbers are advantageous for buyers to deal with.
Words of Wisdom for Sellers
The best thing a Los Angeles real estate agent can do for his seller is to help him watch and track inventory trends and determine the best time to put the home on the market. According to trends, listing too early can leave potential gains on the table, but if sellers delay too long they may lose the ability to orchestrate a profitable bidding war due to 2014’s rising borrowing costs. Sellers should request monthly reports from their agent on the numbers of listings and closings. When large upticks are noticeable in conjunction with closings the forecast will call for the perfect time to list a home, as the price gains will be clearly slowing.
Finally, sellers should be leery of pricing their homes too high. Buyers are getting smarter in terms of what true market value is, and if a home is priced too high it will likely sit on the market until it is lowered. In some economic housing climates the strategy of pricing high only to reduce the price tag to draw attention may be advantageous, but when considering the Los Angeles landscape of 2014, such tactics pose more risk for sellers than reward.