Future Directions for Livermore Real Estate

Predictions for next year’s housing market are already here, with industry analysts expecting higher home prices in the first quarter of 2013. Will California and Livermore Valley lead the way? Here’s what the California Association of Realtors® 2013 Housing Market Forecast says!

First, let’s look at how 2012 is expected to wrap up. According to the Housing Market Forecast, California will close out 2012 with home sales activity 5.1% higher than 2011. Statewide home prices will average $317,000, posting a 10.9% gain over 2011 price levels. Livermore Valley home prices are already well above this average, as noted in my prior blog.

For 2013, California home sale volume is expected to be modest, due to shrinking home inventories. Sales activity is expected to pick up by only 1.3%.  Meanwhile, home prices are predicted to increase by another 5.7%, bringing the statewide median home price to $335,000.

These estimates are conservative, and the wind could shift in a number of ways. For example, housing and monetary policies will influence market activity. The condition of our national and local economies, as well as our employment outlook, will have an impact on sales. We also have homeowners who are waiting out the market in the hopes of higher home prices next year.

With those thoughts in mind, Livermore Valley is likely to do better than the statewide projections for California. So far for 2012, our home prices are already up by 11.4% from a year ago, well above the state average of 5.1%!

Will we see double-digit price gains in 2013? It’s certainly possible, depending on the demand in key price ranges. Our proximity to the Bay Area keeps home demand strong, and the decrease in distressed property sales will keep inventory limited.  Price gains are likely to be strongest in the mid-range of our market, with homes in excellent condition enjoying the best offers.

Our community events, charming downtown districts and miles of wine country offer the best in California living without the big price tag!  If you are thinking of buying or selling a home in Livermore, Dublin or Pleasanton, please contact me today! Whether you are looking for the latest market statistics or just need help with a few questions, turn to me as your professional Livermore Valley real estate agent.

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

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