REPORTS ARE IN, 2013 WAS A SELLER'S MARKET!

Please don't misunderstand, buyers that took action, still bought 20% below the high of2007, but due to tight inventory, sellers enjoyed many multiple offer opportunities and bids were sometimes over list price.  As a result, the 2013 housing market had its biggest gains since 2004.  Increase demand coupled with limited supply resulted in a 19.7% jump in home prices.  Having reported that, December was still a very slow month for sales for the resale home in Sothern California.  In fact, they were at a 6 year low in volume, according to Data Quick,  even as prices jumped, for precisely that reason, low inventory, more demand on  the housing that was available. (More on the exact numbers later).  What is the outlook after one month of 2014?  Decidedly, it is a mixed bag: 1) Inventory remains tight, although listings are already starting to hit the post-Super Bowl market pick up.  Sellers who list early without waiting until the official spring season will be rewarded with a brisk and busy market.  The O.C. jobless rate dropped to 5.2% reportedly at the end of January.  The Fed has trimmed back another 10 billion a month in its commitment to buy bonds.  The response overall has been favorable which means expect interest rates to continue to inch upwards.  If you are a buyer looking to keep as much purchasing power as possible, pay more attention to interest rates than housing prices, because therein lies your true north.  You qualify for a loan based on what you can pay, so be cost sensitive more than price sensitive.  There has been some solid economic news reported, such our 4th quarter 3.2% annual rate of growth, based largely on consumer spending which is usually a signal that people are feeling better about their own personal economic outlook.  Consumer confidence is a key to any serious turnaround coupled with hiring trends and housing.  But the strength of the report also came from the type of spending; durable goods such as cars, technology, and appliances.  Spending on services also rose significantly meaning traveling, dining out, and other non-essentials are also coming back.  There is a ways to go yet, hiring being the key and still lagging behind the high of 2006.  Expect as those numbers increase, so will the housing market continue to heat up.