According to an article in HOUSINGWIRE, the housing market in California should continue to show improvement in both terms of value and volume. To read the full text of the article click here.
While the 2014 market had a slightly lower sales volume than 2013 home prices increased. Information gathered from Zillow suggests that on average home values in California increased 7.8% versus 2013 values.
Most Californians can expect their home value to increase between 3% and 5%, Zillow predicts 3.7% over 2014 values. When you add that up the pricing gains from the beginning of 2013, home prices will have increased on average about 35% by the end of 2015.
With all that said, home prices are still, on average 16% below their all time high peak in May 2006. The best thing that can be learned about this is that while the percent increase in value seems dramatic and it is, think of this; since home values are about 16% less than the peak, we still have to go up 32% from here just to get that back. Really! Just think of it this way. If you had a $10,000 stock account that lost 50% of its value it would be worth $5,000. Now from here if you were lucky to get a 50% gain from your new balance of $5,000 it would still only be worth $7,500! Yes, check the math, 50% of $5,000 is $2,500… sorry, didn’t mean to depress you. But, the good news is that we are on the mend and heading in the right direction.
J. Brent Calver