California is one of the best states to buy a property, and the numbers proving its stable real estate markets are being closely monitored since the beginning of the year.
Here are several real estate market forecasts for 2015 and a few other trends that experts are seeing as of date:
Home Price Trends
Home price trends will continue to head upward, but depending on the locality. Overall US home prices will continue to increase by 5.7% until middle of 2015.The general consensus, or at least from the outlook of many conservative economists, is that residential property values will continue a steady rise.
Biggest Gains in the South
The biggest price gains will take place in California and the Southwest. The real estate information company Zillow has an interactive forecasting tool that can be adjusted on the projected increase or decline in residential property values. According to Zillow, double-digit increases will be limited to some Californian cities and the Southwest. This is seen in the properties offered by realtors, like the Echelberger Group.
Mortgage surveys are expecting the average rate assigned to a 30-year loan to rise gradually, perhaps reaching or exceeding 5.0% by the end of next year. Reports say that mortgage lenders are relaxing their standards in several key areas including credits.
Lenders are permitting lower credit scores and greater levels of debt, where borrowers are concerned. The lower loan volume inspired this industry-wide reaction. Traditionally, when application volume goes down, lenders try to compensate by loosening their standards and releasing more loans.
Home foreclosure spiked when the residential market crashed, and it stayed high in the following years until a couple of years ago. Now, foreclosure filings have begun to decline. This is another lovely sign of normalization within the housing market, and for the macro economy as well.
Reports show that foreclosure inventory had declined for successive 31 months. Distressed properties commonly underpriced erode home prices across the board. This also applies to non-distressed properties. This means a reduction of distressed inventory helps sustain and lift residential property values.
The housing market is seeing the glory as the Californian housing markets rise from the ashes. If the predictions are true, this year will be a steady high for the already good housing market.