Categorized | Residential

West Coast Set for Tremendous Increases in Home Prices

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After being one of the hardest hit regions during the residential real estate market crash, the West Coast is looking to strongly rebound over the next two years. In fact, many towns and cities in the region are anticipating a double-digit increase in pricing through the year 2013.

The residential property markets in many towns have already started to see strong growth, as homebuyers and investors are taking advantage of the low mortgage rates. In fact, many economists believe that right now is the best time to buy because prices are still relatively low and should rise in the coming months.

While home prices are set to rise by as much as four percent over the next four years nationwide, some West Coast towns and cities are projecting increases of as much as ten to twenty percent in the next year and a half. Cities like Madera, California and Medford, Oregon are expected to see increases that exceed twenty percent.

One of the reasons that housing prices are expected to see such large jumps is that inventory supply has consistently declined in recent months. Inventory has shrunk by more than twenty percent across the country.

In addition to the declining inventory numbers, the market looks to benefit from the decision of banks to opt for short sales as opposed to foreclosures. With fewer foreclosed properties on the market, overall residential real estate values will benefit.

The news of anticipated pricing increases is certainly good news for realtors and lenders, as it gives further proof that the market has finally hit its bottom.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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