A new year is upon us, which always causes me to reflect on the year just past. In 2014 we saw a robust recovery in our local real estate market, with most neighborhoods equalling or surpassing the previous peak prices of 2007. For many that prompted selling property that was no longer underwater or that had appreciated enough to profit from a sizable gain. If it was an income property, it begged for a 1031 exchange. This year I expect more of the same.
In 2015 interest rates could creep upward, but it’s a safe bet that money will remain relatively inexpensive. Another good assumption is that the income property market (i.e. rental properties) will continue to be tough to source. I fully expect that savvy investors will be ready to pounce when the right opportunity arises, thus requiring that you have your finances ready and a good broker on the look out for you (yes, I mean me).
The same goes for buyers seeking a new home. While I anticipate more listings coming on the market in the February through May timeframe, there will be competition for the best of those. Those who dither will either have to be patient and wait for a change in the market or “get OK” with losing out. If you know your parameters we can fashion a plan together that works for you and set expectations accordingly.
In closing, I want to thank all of my 2014 clients who took part in Bixby Residential’s Closing Gift Program. This year I made gifts in their honor to the following organizations: The Anti Defamation League, ASPCA, Blind Children’s Learning Center, Boys to Men, The Environmental Nature Center, Habitat for Humanity, Leukemia & Lymphoma Society, Make A Wish, Mariners Elementary School Foundation, Miracle Feet, OC Marathon Foundation, U.S. Sailing Center, Surfrider, and the UCI Center for Neurobiology of Learning and Memory. I appreciate the opportunity to give back to you in a meaningful way, and I look forward to continuing that trend in the year ahead.
All the best in 2015,