Home owners experienced a double-digit growth in value during the first half of 2013, which slowed to a more historically sustainable level in the second half of the year. It appears that the smaller, but steady, increase will continue in 2014.
“I think there is still momentum,” explained Chris Hasvold, owner/broker of Coldwell Banker Village Properties. “It was actually a more active holiday season in real estate compared to the last few years, which I think bodes well for 2014.”
Hasvold said values increased in the first six months of 2013 by 22 to 23 percent, then tapered down in the second half to four to five percent.
“Overall, values ended up 20 percent higher last year,” he said. Hasvold calls a steady four to five percent increase in value “a sustainable level.”
“Historically, if you look back 60 years, three to five percent increase per year is sustainable, if you take out the ups and downs.”
The reason values escalated by the double digits in early 2013 was because of a shortage of inventory, said Hasvold.
“As prices came back, more people got out of underwater and were able to put their homes up for sale; inventory doubled in the last half of the year so increases leveled out,” he said. “At that point the sales rate began to stay constant throughout the remainder of the year.”
Hasvold said he believes Fallbrook will be in line with what national real estate forecasts are for 2014
“It looks like 2014 will continue a sustainable appreciation factor; a healthier market; that is really a good thing,” said Hasvold. “We can’t have those wild fluctuations; wild increases lead to wild declines.”