Can you believe we’re already more than half way through the year? Time has just been zooming and the housing market is responding to the changing nature of the industry. Some of our previous forecasts have come true while others still remain in the dark. So as any esteemed fortune teller should do, we are hereby obligating ourselves to share the predictions. Before we begin, there are a couple of factors to take into consideration. The overall market is finally balancing out after years of fluctuating. The Feds have decided to discontinue its Quantitative Easing Program which mandated them to bulk up on monthly Treasury Bonds. The process of selling a home in the Bay Area will ultimately be affected by such changes. Below, we have listed the top predictions for the last two quarters of the year.
Interest rates will start to ascend after a previous downward trend that many of us grew accustomed to. It should climb through the 4-5 percentiles ending with a final 5 percent by the end of 2017.
Prices will maintain their stability in many regions around the Bay with a minor increase of maybe 5 percent. The past two years, many of us have observed 30 percent proliferations but that is no longer the rule of thumb. We’re expecting smooth sailing from here on out.
If higher interest rates do come about, the competition from first time homebuyers will intensify. Property management companies may become overwhelmed by the abundance of interested consumers.
This segment will remain powerful as demand rises. However, prices will only “spike” in the most attractive regions.
These numbers will continue to climb. As the dust starts to settle, homeowners will feel more comfortable putting their houses on the market.
Where Will the Deals Be?
The city of Hayward will become extremely desirable for residents seeking more affordable homes. San Leandro, Richmond, Castro Valley, Emeryville and El Cerrito will also be a deal breaker for many eager prospects. Oakland’s neighborhoods have high hopes for appreciation. Lastly, any location near a BART station will surely increase in value.
Source: SF Bay Times