Prices Increases Expected for 2013 - December 18th, 2012
Buyers are expecting prices to continue rising in 2013 which is creating urgency to buy now. Investors are on the hunt for good buys as well.
At the same time, some buyers are waiting due to low inventory. The low inventory is causing multiple offer situations on desirable and well priced homes.
Analysts released a report this week, saying home acquisitions by investors are likely to keep pushing home prices higher.
Buyers still cited low interest rates as the main reason to buy as soon as possible. Repeat buyers are also planning to make upgrades with their next property. When asked about the planned size of their next home compared to their current home, 49 percent indicated plans to buy a “much bigger” home, which was the most common response. In addition, 41 percent plan to buy a home that is the same size but nicer, more affordable, or in a different location. Redfin says it expects “2013 to be the year of the move-up buyer.”
Overall, future prices are consistent with about a 5% increase from now to November 2013.
Michael Thomson is a full time Realtor with the Keller Williams Sunset Strip Office. He has lived in Los Angeles for over 20 years and specializes in West Hollywood, Beverly Hills, Hancock Park, Hollywood Hills and Beverly Center-Miracle Mile. Feel free to call for questions at 310-927-8422 or visit the website at http://cityhomesla.com.