A recent survey conducted by the Home Buying Institute showed that homebuyers expected marked improvements in home prices over the next few years. Activity on the Westside is certainly showing optimism with open houses buzzing with people and multiple offers being the buzz phrase throughout the summer. At our first open house two weeks ago in Westwood on Fairburn Ave., we had over 60 parties attend and we were in escrow with multiple offers within a week of hitting the market.
The summer survey by HBI asked 25,000 consumers how they felt about the value of their homes, and an overwhelming 69 percent stated that they expected their home price to rise in the next 24 months. Some of this optimism could be due to a brighter Standard & Poor’s Case/Shiller Home Price Index, according to HBI.
The most current S&P Home Index stated that home prices had risen for the second consecutive month in several cities.
“This is a seasonal period of stronger demand for houses, so monthly price increases are to be expected and were seen in 16 of the 20 cities,” explained Index Committee chairman David Blitzer.
However, an abundance of foreclosure and shadow properties could curb rising home values. The vast number of bank-owned properties may continue to drag home prices down, as demand lags behind inventory in many regions.
Unsteady unemployment rates and increased difficulty qualifying for mortgages may also work against these positive housing market indicators, the source reports.
Source: Home Buying Institute