The report says California home prices went up 24 percent in 2013. Researchers say those skyrocketing home prices can’t really be sustained long term. Alex Villacorta is a researcher at Clear Capital.
“The growth that we saw in 2013 is going to give way to a much much more moderate rate of growth in 2014 and really beyond as a lot of those high growth rates are going to be a thing of the past,” says Villacorta.
The report forecasts that home prices should continue going up about four to five percent in 2014.
The report says short sales and other distressed property transactions shot up in the last few weeks of the year. Those sales accounted for about 20 percent of overall sales during that period. That number is flattening out, according to the study, and shouldn’t change much over the next year.