Santa Clarita California Real Estate Market Update January 2014

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Happy New Year! The real estate market was in a frenzy last year; so much was going on. You might be wondering if that will continue in to 2014.

The good news is the market is beginning to calm. Prices are increasing still, but not as dramatically as they did in 2013. In fact, from May of 2012 to May of 2013 the average increase in price was about 30%. This year we only expect a 6% increase. We ended the year with the average sales prices of $406,000 and expect it to rise to about $432,000.

What about interest rates? We experienced some phenomenally low rates over the past 12 months. Unfortunately, those rates couldn't last forever. Experts are predicting rates to hit 5% and possibly even higher in the 2014 real estate market. This makes now the best time to buy. Borrowing money is becoming more expensive everyday. Don't wait.

We expect to see a lot of move up buyers in the market. Homeowners now have equity and they can move into larger homes.

And finally, unemployment still plays a role in our market. In the state of California, unemployment is at 8.5% which is a decrease from the 12.5% we saw in 2009. As employment levels continue to  improve, we hope the market will improve as well.

If you have any questions about the market or your next real estate move, please give me a call today. Thanks for watching!

Reference: LA Daily News (http://www.dailynews.com)