New year, new market: Things are going to get hot in 2014
The California real estate market is getting ready to heat up. Buyers and sellers alike will benefit from the upward trend expected in 2014, according to the California Association of Realtors (CAR). The biggest change may be in supply of homes available to buyers in the New Year.
The main reason we will see a rise in inventory is that more homeowners are seeing equity return to their homes and these higher home values give them the opportunity to sell.
Another reason for the predicted increased supply of available homes is that investors, who were buying homes with a “hold and rent” strategy, are now buying with a “flip” strategy.
According to Leslie Appleton-Young, CAR’s chief economist, 2014 will also see a market where obtaining a loan is more difficult than in the past, as new underwriting requirements take effect starting January 10, 2014.