Today, I’m happy to give you the State of the Union for home values in the San Gabriel Valley area. From 2014 to 2015, the area saw an increase in the number of units sold. In 2014, 1,990 units were sold. In 2015, 2,158 units sold.
The average sales price also increased from $553,000 in 2014 to $573,000 in 2015. That’s an increase of 3.67%. However, if you compare December of 2014 to December of 2015, the average sales price increased from $546,000 to $595,000. That’s a 9% increase in home value.
What does this mean for you? So far in 2016, the market experienced a healthy increase in both home values and the number of units sold. This trend will continue in 2016 because there is a steady stream of buyers. There are also many move-up buyers who are selling their homes in order to move up into that dream property.
For 2015, I expect we will see a single-digit increase in home values, and mortgage interest rates should stay the same. The China economy is slowing down, Japan’s economy is also struggling, and oil prices are headed for $15 a barrel because of the Iran deal. Therefore, the Fed had no reason to increase the rate. In fact, they may even decrease their rate.