California Market Snapshot
With the decline of home sale prices in the recent months, we keep hearing questions about when it’s still a good time to sell? So, we went looking for some answers about where home prices are headed in the next 5 years.
The results are not that surprising specially for Silicon Valley and greater Bay area since tech inspired housing boom should continue specially with the influx of new talent who will be moving here. The data shows:
- Over the next 5 years, average annual appreciations will be 3.94%
- Home values will appreciate by 4.5% in 2014
- The cumulative appreciations of almost 19.7% by 2018
- Average Annual increase rate will decline to 3.7%
Ironically this data goes to the heart of the anxiety some sellers have about putting their homes on the market since they know that they might not be able to purchase a similar size home with the proceeds of their sale.
This data was the results of a Pulsenomics Survey of more than 100 experts that shows the home value appreciations is going to moderate over the next 5 years and will average to about 3.7% per year.
There is good news for more sellers to consider selling in 2014 since the rate of appreciation will slow over the next 5 years. But is that enough to justify a sale? We suspect the decline in price appreciation is not sufficient to entice home owners to sell their home.
However, the recovery in the housing inventory could be a catalyst to help some owners on the fence to sell their home. In fact, according to a Wall Street Journal report, the housing inventory in some markets increased by 2.5% with 1.98 million homes listed for sale.
What kind of information do you need before you decide it’s time to sell?
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