Wednesday, January 15, 2014

What's Ahead for the 2014 Real Estate Market?

What's Ahead for the 2014 Real Estate Market?

This past year has been pretty amazing to say the least. Today I wanted to reveal my predictions for 2014 real estate market; but before I begin, I wanted thank you for your continued business and your referrals. They are the lifeblood of my business and we are very appreciative and grateful for all you have done for us in 2013 and we are excited for an amazing 2014 in real estate.

In no order of importance here are my top seven real estate predictions for 2014.

1. Home prices will stabilize in some areas and others will experience gentle appreciation. In the last twelve months, most metropolitan areas across the county saw substantial increase in prices. For us here locally the upswing in values were fantastic, it's was the first time in 6 years there was good news for home seller.

This year don't expect a big upswing in prices like we just had however, gentle appreciation will occur in small markets where inventory is low. Connect with me if you'd like to know your neighborhoods inventory levels & absorption rate.

2. Home builders & new construction will compete with resale housing. We are seeing it all over the place; developers are back in the game & new construction is being built. Big homebuilders are buying large & small tracks of land all over the country, especially here in Southern California.

3. Rental housing markets will surge & go up. Rentals are in demand here locally. If you have a property you want to put on the market as a yearly rental you could have up to 8-12 applicants. Because of the shortage of good quality rentals it’s causing the rents to rise.

4. Interest rates, the market is still very interest rate sensitive. They've been extremely low for a very long time but we anticipate the rates to continue to climb.

All eyes will on Janet Yellen this year; she will become new chairperson of the Federal Reserve.

Yellen will continue to monitor the bond-buying program, but inflation will continue which will lead to higher rates and more costs involved for getting financing. Interest rates can only be suppressed for so long, we expect interest rates will rise and hit 5% or higher. Buy or refinance now and lock in the rates while you still can.
5. Inventory will slightly rise. According to core logic it's a company that deals in real estate statistics and this past year 2013 they estimate that there was over 3 million households that went from what we call negative equity meaning they owed more than the house was worth to positive equity.

So for theses homeowners it has a huge impact on their psyche, their financial situation and their confidence of what they're able to do with their property. So when 3 million households go from negative equity to positive equity that opens them up to make moves in the market and you will see more homes come up for sale because it.

6. Homes with good curb appeal will lead market sales. Home buyers will be extremely picky in 2014; they will only buy the best home in the best condition at the most affordable price. The Buyers mentality has shifted from doing whatever is needed to buy a home to now being extremely aware of value and cost.

7. Real estate offices and real estate licensees will increase again this year. You’re going to see real estate agents who are getting back into RE to make a quick buck cause the they think the market is booming again like the early 2001-2005 market.

When it comes time to sell your home, Be very cautious to not just go with the first agent you meet with, do your homework. Make sure your agent has been listing and selling homes successfully for a minimum 10 years more & they have a track record to prove it. Who you work with matters in 2014.

If you have any questions about this information or would like to discuss your plans, don’t hesitate to call or email me. I hope you have a prosperous and productive 2014 and thank you again for all of your referrals and past business.

Remember when it comes to buying or selling real estate, Frank gets it done!