Recovery Will Continue Through 2014

 

The National Association of Realtors has predicted that the housing market will continue on it's road to recovery in 2014 and that home prices should go up around 6 percent.

 

Mortgage rates are expected to increase to around 5.4 percent which should keep the real estate market somewhat balanced.  Loans will be a little easier to obtain in  this upcoming year because of some loosening of mortgage underwriting guidelines.

 

Low inventory will continue to be a challenge for home buyers and investors. I believe one reason that there are fewer homes on the market, is that many homeowners chose to remodel rather than sell when home prices dropped. Many of those same potential sellers are now satisfied with their homes and will stay a bit longer.  Others will decide to sell now, however, as prices are increasing.

 

All indicators are that the real estate recovery is gaining momentum at a cautionary speed.  Jobs are being created as the overall recovery improves and buyer confidence is up.

 

I don't think that we are going to see "runaway prices"  anytime soon, however, I do recommend that 2014 buyers get started now to stay ahead of rising interest rates which will affect how much home they will be able to purchase.

 

May you have a very Merry Christmas and a joyous Holiday Season!  

 

Nancy Puder is a real estate broker in Arroyo Grande, CA.  For questions concerning your individual real estate needs or to determine the value of your home, call Nancy directly at (805)710-2415 or email Nancy@NancyPuder.com She always enjoys hearing from you!