Real Estate Trends
ISSUE NO. CL01
Keeping you up to date with useful real estate news and intelligence
Real Estate is Hot Again!
After 6 years of sub par performance, the real estate
market is finally coming back - with a vengeance .
Mortgage rates are rising...
should you buy now?
Many consumers believe there is an inherent bias
toward the real estate community when we state
it is better to buy a home now.
For that reason, we want to quote a third party
source today. Forbes, in their online edition last
week, spoke to the importance of buying a home
now rather than waiting.
The article, Should You Buy a Home Now or Pay
More Later?, explains:
“With mortgage rates creeping up toward 5%
as 2013 draws to a close, potential home buyers
have some decisions to make — and soon.
t’s hard to believe that it’s been over 6 years since
the real estate market started it’s downward
spiral that helped contribute to one of the worst
economic downturns in U.S. history.
If you’ve been in your home that long, then you
may have cringed like I did as you watched your
equity and value plummet while homes were
foreclosed and short sold all around you. Many
lost their homes and much of their equity. Some
have still not recovered. Hopefully you’ve landed
on your feet by now and maybe even begin to build
The good news is that real estate turned the corner
in 2013 and saw it’s strongest gains in the last 6
Value and Volume Up
Prices started perking up back in mid 2012 and
shot up dramatically in January of 2013. Since
then, it’s been month after month of increasing
volume and price.
A look at the chart above on the left shows that in
the last 24 months, the median price of sold homes
has risen from $240,000 to $336,000. That’s a
40% increase and most of that has happened in
the last 15 months since about July of 2012.
The danger for potential home buyers isn’t that
mortgage rates are nearing 5.00%; the real threat
is that rates could go higher, to 5.50% or even
6.00% in 2014.”
The chart on the right shows that available homes
for sale has steadily decreased over an 18 month
period to nearly half of what it was near the peak.
The article spells out the financial consequences
a buyer would face by waiting: $67,746 on a
This simple illustration of supply and demand
really shows the increase in buyer activity that has
helped bring the real estate market back
They’ve gone on to identify four things a buyer
should take into consideration before delaying a
decision to purchase.
What can we expect in 2014? Likely the return of a
more normal market with more normal appreciation
somewhere in the neighborhood of 5-8%. The
days of 25-30% appreciation are probably over...
and that’s a good thing for the health and longevity
of the market. -JB
Prudential Becomes Berkshire Hathaway Home Services
For just over a year now, the Berkshire Hathaway Home Services
Brand has been building momentum throughout the real estate
world. Most Prudential offices have made the switch to become
BHHS affiliates including our own. As of December 19th, our local
office previously known as Prudential Canyon Lake Realty will join
the Berkshire Hathaway family of companies and now be known as
Berkshire Hathaway Home Services - California Properties.
Because of the strength and reputation of the Berkshire Hathaway
family of brands, you can expect to see more visibilty and better
tools to help you whether you are a home seller or home buyer. You
can also expect the same level of service, performance, and trust
that Prudential has always provided under our new moniker.
The Federal Reserve will stop “tapering”
causing rates to return to historically normal
Home values are rising
“2013 saw the return of multiple
offers and bidding wars as inventory
was tight and buyers were back in the
Rates will likely rise — and soon with 5%
interest rates right around the corner.
The autumn buying season is underrated
“as you can take advantage of year-end tax
breaks and the fall weather makes it an ideal
time to move”.
The financial advice Forbes gave to their readers
was rather simple. Buy now or pay more later!!
Information provided by The KCM Blog. http://
Wallick and Volk, Temecula
27708 Jefferson Ave. #105
Temecula, CA 92590
NMLS #259057, Licensed by the Dept. of Corporations under the California
Residential Mortgage Lending Act. License #4130785. Corporate NMLS 2973.
Notice: This is not an offer to lend or extend credit. All loans are subject to