For a time, as the market has been recovering, we were seeing very high home-value appreciation rates. Expect more historically normal appreciation rates. As the market continues its recovery, appreciation will slow down which is a leading indicator of a normalizing, or balanced housing market. Home values will increase in moderation, vs. the past two years.
#2 N. California will lead the price increases.
Northern California has experienced the most significant job growth since the end of the recession, followed by Portland, Seattle, Denver, Phoenix and Tucson. We will see increasing demand for homes as population growth follows job growth beyond the market’s ability to build inventory. This should continue to push prices higher still.
#3: Cities face an affordability problem.
A lot are addressing this by building smaller homes — which take up less space and by developing additional public transit to the developments. But, what if a backyard, more space and room to breathe is what you crave?
#4 Buyers are flocking to the “burbs.”
People would still like to live close to the city where they work and they’re close to amenities and in walkable neighborhoods, but currently many folks in S.F. are not able to find enough inventory. And, many of the properties that fit their ‘wish-lists’ are not affordable for them to buy.
#5 Millennials are on the move.
More jobs are being created for the 30-somethings, with rising wages. This demographic group also has marriage and children on their minds and this is driving them to buy a home with room to grow.
#6 Baby Boomers are downsizing…or are they?
Many boomers are looking to move when they reach retirement. Some wish to downsize to simplify life due to financial or physical needs. However, many are also buying-up to accommodate kids and grandchildren when they come to visit. And, the boomers are no longer flocking to AZ and FL like they used to; family is what they want to be closer to.
#7 Rates are increasing.
After the housing market crash, interest rates have remained historically low for years. This is now changing, with the Feds planning on three more rate hikes in 2017. If you are a buyer or a seller, the time to act is NOW. Rates will go higher and inventory is not expected to improve. So, Winter/Early Spring is the time to get moving!
“I chose Dayna to help sell my mom’s home because of her outstanding reputation. Dayna was the perfect agent and went above and beyond through the whole process. Her advice was spot on and added to the sale amount. I highly recommend Dayna!”
Walnut Creek Home Seller – Mona W.
Need to find a real estate agent near Walnut Creek CA? Dayna Wilson serves the East Bay communities of Orinda, Lafayette, Moraga, Walnut Creek, Alamo, Danville, Pleasant Hill, Concord, Clayton and Martinez. A certified Seniors Real Estate Specialist ®, Dayna helps boomers and seniors with the financial and emotional challenges encountered when selling a long-held family home.