Westcoe Realtors, Riverside California…Yes, Toto…it’s that time of year when our clients want us to break out the “old crystal ball” for a quick peak into what we feel will be happening in our local Riverside real estate market for 2015. So, with deference to the Great Karnac himself, based upon our 29 years of selling real estate in our city, here is what we see happening in this New Year ahead.
In a nutshell…if you liked 2014, then you will like 2015. Stable is the name of the game, with steady growth on the horizon for this next year…and here is why we think that way.
First…Riverside remains the affordable answer to the crazy home prices of our neighbors in Orange and Los Angeles Counties. There has always been a real estate triangle between the 3 counties, and when prices climb like they have the past few years, Riverside is the main beneficiary of these out-of-control hikes. The drive to work may be a pain, but at least one can afford a nice home (or a first home for that matter) in our area, instead of renting some apartment for more than the monthly payment on a great home in Riverside.
Secondly…There has been very little new home building in our area…and this leads us directly to the supply and demand equation for real estate. The demand for housing in Riverside is very steady, and when the supply of new homes is limited, then the demand for existing homes will stay strong. At some point in time, the new builders will jump back into our market, but for now, this demand for existing homes will keep appreciation for homeowners nice and steady.
Thirdly…The Inland Empire job market, by almost all measures, is rebounding quite nicely. We are not economists here at Westcoe, but almost everything we read is very positive about jobs in our area. It wasn’t that long ago the only discussion about jobs in Riverside was how many we lost…now the shoe is on the other foot, and jobs are on the rise. Naturally, the more jobs we have, the more people who can afford a home…and since we have the affordable housing inventory as mentioned above, the bodes extremely well for our local market.
Lastly…Let us not forget our dear old friend…home loan interest rates. There isn’t much we can say here we haven’t said before, but just remember…today’s low interest rates are the best friend a real estate market can have. You can talk all you want about the above referenced reasons for a great 2015, but it all begins and ends with low interest rates…and the good news is that barring some world wide calamity, there is nothing on the horizon that would indicate a major revision in home interest rates. You can still get around 4% (sometimes a little lower, sometimes a little higher…depends on your timing), and that is pretty amazing.
In the end, the real estate market after 2007 was financial carnage for almost every one who owned a home. Prices fell further than anyone could ever imagine, and the recovery took longer than anyone wanted to believe…and yet here we are…on the upside of history. Our real estate market of 2015 is the market of stability, low interest rates, and conservative optimism…a nice picture for everyone.
Take care, and Happy 2015 from Westcoe.