Home Sales to Continue Upward Momentum Next Year
- On the national level, the number of home sales is forecast to increase by 10% this next year, with prices increasing by 6%. This will be supported by lower unemployment and, hopefully, less stringent lending standards.
- Low inventory (few houses for sale) will continue until housing starts to increase (by 50%) to meet demand.
- Mortgage rates are expected to reach 5.4% by the end of next year as consumer prices rise 2.7%.
In the East Bay, even with the 20 to 30% increase in home prices of the past two years, these forecasts also reflect what’s happening here. There are still a great number of Buyers looking for a house in the East Bay.
A projected 6% increase in home prices is actually a more “normal” level of appreciation for the East Bay, or one that was sustained in the 90’s until everything started to go off the scale in 2005.
To develop a strategy for selling your home or buying a new home in 2013, do give me a call: 510 847-2409.