South Orange County Blog from Bob Phillips

Real estate prices appreciate at a slower pace

From Brena Swanson, of HousingWire.com, January 17th, 2014

Real estate prices appreciate at a slower pace

prices-up

“While residential real estate appreciation continues to trend higher, the rapid pace experienced early last year is easing, Veros Real Estate Solutions said in its latest VeroFORECAST report.

The real estate market forecast looks ahead for the 12-month period ending Dec. 31, 2014. The forecast covers more than 1,000 counties, 345 metro areas and 13,770 zip codes.

The company expects 5.1% appreciation over the next 12 months, rising from a 4.8% forecast last quarter and marking the sixth consecutive quarter where the index has shown forecast appreciation.

“The continued appreciation demonstrates the overall health of the real estate market, but it is important to note that this is just a slight increase from last quarter’s national forecast, indicating much slowing in the forecasted rate of increase,” said Eric Fox, Veros’ vice president of statistical and economic modeling.

California prices continue to soar higher in key markets

California dominates the list of cities experiencing strong price appreciation.

The top five markets include San Francisco-Oakland-Fremont, Calif.; San Jose-Sunnyvale-Santa Clara, Calif.; Seattle-Tacoma-Bellevue, Wash.; Los Angeles-Long Beach-Santa Ana, Calif.; and Midland, Texas.

On the other side, the five weakest markets in terms of price appreciation include Atlantic City, N.J.; Kingston, N.Y.; Fayetteville, N.C.; Norwich-New London, Conn.; and Rockford, Ill.

“Currently, most areas in the country are expected to see price appreciation with few areas forecast to show declines,” Fox concluded.” ( End of Brena’s article.)

From Bob Phillips: Here in South Orange County the housing market has been unusually strong, through the customary Holiday season, suggesting a strong selling season as we begin our typical best selling period, from February 1st, through August. This portends to prices going up again this year, although they are unlikely to match the 20%+ increases of 2013.

If you’re thinking of buying, NOW might be your best time to pounce, before prices – and interest rates – go up further.

If you’re thinking of selling, you just might pause – to watch the market for the next 2 or 3 months – and THEN put your house on the market in May or June.

In either case, I am here to help you with your real estate planning. Give me a call, or shoot me an email, and let’s talk about real estate.

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