Guidance for The Movement in the Real Estate Market

Regional Housing Market at a Glance.

This article was the first article written by the California Association of Realtors for the 2015 calendar year. Along with my summary we have also included a link to the C.A.R. article.

The California housing market – January 2015

I first wanted to outline the 2014 information presented in the article.

Sales of existing single-family homes increased on a year over year basis for the first time since July of 2013. The statewide median price continued to increase however the growth rate in 2014 was the slowest since 2012.

For the year as a whole, home sales declined 706 percent from 2013. Equity sales, when sellers’ have earned equity in the home, increased by 3.2 percent in 2014. Distressed properties sales decreased by 52.7 percent. This could be due to factors such as low foreclosure rates, more homeowners now having earned equity in their homes, and less short sales being approved by banks. The statewide median home price increased by 9.8 percent in 2014. It was the first time in three years that the price increase was less than 10 percent. Homeowners can expect to see a slower growth rate in 2015.

Of the regional data presented in the article, I wanted to concentrate on the San Francisco Bay Area which is where our office is located. The Bay Area housing market outperformed the rest of the state. The decline in total homes sold when compared to 2013 was the lowest in the state. Economists attribute this to the strong bay area economic growth including job market. This is third year in a row that the sales growth rate in the region outperformed all other regions of the state. Due to the imbalance in this region between supply and demand the regions median home price experienced a double digit increase for the third year in a row. That is great news for home owners who already own homes but not good news for those first time buyers that are still trying to get into their first home.

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