Wednesday, January 15, 2014

In a real estate market that reflects many nationwide, there is good news and bad news in 2014 for buyers and sellers in Southern California’s Orange County and surroundings.

“Inventory is increasing a bit and skyrocketing home prices have stalled in recent months,” says Orange County REALTOR® Leslie Sargent Eskildsen. “We anticipate a more balanced market as we settle into 2014.”

For good or ill, Eskildsen projects spring market conditions that look like this:
 

A more balanced market – Pricing will be more realistic. Sellers will not be seeing multiple offers overnight, and buyers will have a better shot of getting their first home choice.

Moderate interest rate rise – As the economy continues to improve, expect 5.2 percent to become the new normal. That’s still a good rate in the scheme of things, but smart buyers will get busy early, before they reach that level.

Slow but steady price rise – Prices will inch upward, but not as dramatically – as sellers keep their expectations in pace with the market and buyers respond to the still-low rates.

Affordability will be impacted – As prices and interest rates rise, however moderately, some buyers will be pushed out of their ideal home. They may have to settle for less house overall in order to keep the same monthly payment.

Lending guidelines will loosen up – Borrowers will need to toe less of a strict line as lenders relax requirements a bit. Qualifying won’t be a piece of cake – but it should be more doable than it was a year ago.

New housing will mean more options – New construction is up, boosting home inventory even more and giving buyers a greater number of houses to choose from in new developments and in a greater number of neighborhoods. 

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