Special offer

7 Housing Trends For 2013

By
Real Estate Agent with The Aguilera Real Estate Team - Homes in Tracy and Mountain House, Central Valley California CalBRE# 01766690

7 Housing Trends for 2013

 

 

As 2013 comes to a close and real estate experts forecast where the housing market is headed in 2014, here is a look back of the trends from 2013. 

 

1. Housing Prices Rose Faster Than Expected

According to Trends Vision by Metrolist, the median sold price for a home in Tracy was $278,000 in January 2013, and it has since climbed to $345,000 by November 2013. The pace of price appreciation accelerated significantly over the year. 

2. Mortgage Rates Rose Remained Low

We expected mortgage rates to rise in 2013, and they started to increase in the late spring, but they're still very affordable when you look at rates on a historical scale. They aren't the super-low rates we saw in the past few years. According to Freddie Mac, 30-year fixed-rate loans were as low as 3.45% in December 2012 and rose to 4.49% in September 2013. It is forecasted that mortgage rates are likely to stay low and perhaps even drop between now and mid-2014. 

3. Bidding Wars Returned

The combination of rising prices, low mortgage rates, and low inventory led to a sense of urgency among buyers and the return of bidding wars. According to Realtor.com, inventory in 2012 reached a high of 2,083,710 homes on the market, then declined to 1,583,497 homes in February 2013. By the end of the September 2013, 2,210,000 homes were for sale, approximately five months of inventory. 

4. Housing Affordability Remained High

 Housing affordability has slightly come down this year because of home value appreciation and the lack of income for the consumer to keep up. Even though affordability is at a five-year low, it's still the fifth-highest in the past 30 years. 

5. All-Cash Buyers Continued to Be a Strong Market Segment

Nearly a third of all home purchases were made with cash. This trend has been consistent for three years prior. Some cash buyers are from overseas and some are institutional investors, while others are your smaller market investors who have had trouble obtaining financing for such activities previously. Even owner-occupant buyers are cash buyers because of the tight underwriting standards as of late. Some people are getting help from relatives to buy, and they plan to take a home equity loan to repay them. 

6. Mobile Apps Accelerated Connections Between Buyers, Sellers and REALTORS

Nearly every Realtor and brokerage in the county introduced a mobile app this year to make it easier for buyers and sellers to access information from their smartphones and tablets, including the KW Smart Phone App. Everyone realizes that a desktop can sometimes be inconvenient when looking for up-to-date Tracy Real Estate information. According to the National Association of Realtors, 68% of homebuyers used a mobile app during their home search and 89% used a mobile search engine at the initiation of their home search.

7. Rising Rents and Pent-Up Demand Pulled More First-Time Buyers Into The Market

We are currently seeing a replenishment of renters who want to buy homes instead. In 2002, nearly 70% of people owned homes and 30% were renters. That has declined to 65% of people are home owners and 35% are renters. Rents are rising rapidly than home prices in some markets. There is an increasing demand from people who don't want to live with their parents and who want to buy a home.

 

Posted by



 Lisa Aguilera, Realtor, Add QR Contact  
Cell: 209-814-8256 | Office: 209-597-8256 |Fax: 209-370-8255 | CalBRE # 01766690
 
 
 
This blog article was provided by Lisa Aguilera, a Nationally recognized Realtor and member of the Central Valley Association of Realtors (CVAR). Top Producing Realtor and  CVAR Master’s Club Winner with over $3.2 Million in Sales Annually. Search California real estate and homes for sale: www.TracyRealEstateToday.com.   Short Sale information at Short Sale My Tracy Home or Short Sale My Mountain House Home. Homeowners anywhere in California or the United States contact me for more information: Short Sell Your Home.
 
Serving the following Central Valley / East Bay Area Communities: Tracy, Mountain House, Lathrop, and Manteca.  | Homes for Sale Tracy CA | Short Sale Tracy CA | Foreclosure Tracy CA |Tracy Real Estate | Homes for Sale Mountain House CA | Short Sale Mountain House CA | Foreclosure Mountain House CA | Mountain House Real Estate | Central Valley Real Estate | East Bay Area Real Estate
 
Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about real estate, short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.
 
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Yep, we experienced all seven of these trends in our Lafayette, IN area real estate market.  What will 2014 bring???

Dec 17, 2013 08:45 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

I think it is the cycle of real estate as we all will expericence these at one time or another

Dec 17, 2013 12:08 PM
JodiAnn Garone
Century 21 Action Plus Realty - Freehold, NJ
Bringing you Home!

Lisa,

 

I feel like I wrote this blog myself... Seeing and feeling the impact of all 7 trends you mentioned. Great topic to share

Happy holidays and much success always

JodiAnn

Dec 17, 2013 12:48 PM
David Saks
Memphis, TN
Broker / Industry Analyst

Great information. Thanks for sharing. Have a terrific day ahead.

Dec 17, 2013 04:09 PM