After the dismal years of 2007 to 2011 during which the real estate market plummeted as much as 50 percent in some areas, the market is seeing some substantial increases in both activity and value. Some of the hardest hit areas were in California, but the turnaround in property prices has produced solid recovery in the market there. Although the real estate market is expected to stabilize over the next year, conditions will be favorable for both buyers and sellers. As the market continues to improve, La Jolla is one of the areas poised to see an appreciable increase as 2014 progresses.
Predictions for the La Jolla Area
LaJolla, CA is a beautiful area just south of Los Angeles. The area’s pleasant climate, attractive environment and desirable amenities make La Jolla one of the most stable real estate markets in the state. The median price for home sales in La Jolla was $1 million, with some properties priced at $300,000 at the low end and $14 million at the high end.
Best Course For Buyers
Buyers can benefit from the greater inventory of homes on the market in areas where owners were holding on for better economic and employment prospects. Mortgage interest rates are likely to creep higher, so sooner-rather-than-later is the best timeframe to make your purchase. Buyers can expect the value of their newly bought home to appreciate a bit slower in 2014, making a good purchase price more important.
Best Course For Sellers
For a period in early 2013, home inventories were at a low. Sellers could expect bidding wars to break out if they lived in an attractive home in a desirable area. Low interest rates also made for fairly easy sales and sale prices at desired levels. However, economic conditions have stabilized, and more homeowners feel comfortable putting their homes on the market. Sellers may now have to wait a little longer for their homes to be snapped up, and may have to dicker a bit more on price in 2014.
Potential Problems Ahead
As good as the outlook sounds, a few problems lurk on the horizon that could potentially become a drag on the real estate market. Mortgage interest rates, which have risen above their historically low rates, are beginning to rise. Changes in the financial sector could put increased pressure on mortgage lending, which would cause a decline in home buying. Inflation is another specter haunting the economy. Although, rising employment rates could lead to a jump in inflation that could impact home buying.