As with previous housing cycles, the nation follows California's lead. When the downturn happened, it was California to lead the housing market into the doldrums. In Spring of 2012 I recall mentioning the robust activity to other Real Estate professionals that I worked with in cities such as New York, Phoenix and Orlando, and they were amazed and actually seemed skeptical of activity we were seeing with multiple offers and homes exceeding 10% of value with buyers making up the offer price and appraisal difference to close escrow. Well now they are seeing that in their own markets and have been since the beginning of Spring 2013.
If you look at the recent real estate market from July, the data shows a 5.24% decline in housing inventory. This trend continues in California on a year over year basis and fortunately you will see many other states with similar data and they are now participating in the overdue rebound and subsequent appreciation in their respective markets. Many California cities still make the list and actually round out 6 of the top 10 and many California cities have been bumped down the list by some of the nation’s hardest hits cities now finally seeing a very strong rebound.
Market leaders for year over year appreciation include: Stockton, CA, Detroit, CA and Orange County, CA. These trends all point towards another positive year in 2014 and continued appreciation for the remainder of 2013 for nearly every market in the U.S.
Our market in the East Bay is expected to appreciate in 2014 between 10%-18%.
Statistics were pulled from a recent story on Realtor.com
Kevin R Kieffer, Broker Associate with Keller Williams Realty
Offices in Danville & Walnut Creek, California