As we look forward to 2014 we see reasons to be optimistic about the growth of real estate investment opportunities in California. A changing tide in cash buyers meets the growth of purchase mortgages.Led by a resurgent housing sector, 2014 should shape up to be better than 2013, with consensus forecasts placing economic growth in the 2.5 to 3.0 percent range. Single-family home sales and housing starts are estimated to be at the highest level since 2007, and expect multifamily transactions and construction to post gains as well. But how will this benefit investors trying to get into property? Despite rising mortgage rates, it is expected that 2014 will bring a surge of user buyers taking out mortgage purchase loans, at the same time cash buyers seem to be trailing off. As the the massive flood of cash into Southern California property through 2013 slows a bit, opportunities arise. Many investors have experienced fierce competition when making offers, and price savvy investors are cornered out of the market. With household formations expected to pick up and new home completions gaining more slowly, for-sale inventories may still remain tight and vacancies low next year, however investors making strategic offers that didn’t work in 2013 may beat out the influx of expected user-purchase-mortgage-buyers offers in 2014.
