Northern California - Bay Area New Normal

Dated: January 30 2013

Views: 781

Well if the stock market is any indication, one would guess that we are heading in the right direction. It is trending higher and with that generally goes the housing market. For this year mortgage rates are expected to remain lower, further fueling buyer interest.

Rates are expected to stay in high 3s to very low 4s. This is great news for buyers as it comes down to affordability. Low rates equates to low monthly payments.

FHA loans however are expected to get more expensive with some added cost for borrowers such as increased MI. Refinancing will slow as many of the refinance candidates have already locked in these historically low rates.

Foreclosures will also continue to fall as lenders favor short sales and will promote this option to their struggling borrowers.

Housing starts are rising and the stocks of the big builders are already reflecting the anticipated returns from those companies with Lennar and DR Horton posting some nice upward movement in their stock prices.

Northern California will continue to be strong as there are many investors and first time home buyers in the market and more will show up with check books in hand for the spring market. Additionally, job growth in the region is also moving up nicely. San Ramon and Danville office space vacancies are down which generally equates to stronger employment and hiring.

All of this is good news for the housing market and is shaping the new normal.

Want to Advertise on this Site?

Latest Blog Posts

Compare Countertop Materials To Consider Both Inside And Outside Your Home

Considering selling your home? Countertops create the sizzle in the kitchen and many other areas both inside and outside the home. Check out my recent interview with HomeLight regarding the various

Read More

Low Rates Now Will Have Big Impact On Inventory In The Future

Low rates are fantastic for the real estate market right now but most certainly will lead to an inventory lock down in the future. Motivation to sell and move up which usually happens approximately-

Read More

Remodeling Surge Battles Supply Shortage ROI Challenges Heres Why

If buying isn’t an option, make it yourself. Indeed, in 2020 homeowners across the country found themselves forced into spending more time at home, and they were spending that time in different

Read More

Why Compass And Eastbaypro To Achieve Your Real Estate Goals

Compass is the only real estate brokerage brand that speaks to the next generation of luxury buyer exquisitely. This ‘next generation’ (of all ages) work in industries that have advanced far

Read More