Predictions for the New Year

Happy New Year!  I hope your 2014 is filled with peace, happiness and good health.

What will happen in the real estate market this year?  Many pundits are predicting slightly better sales in 2014 than in 2013.  But the KCM Blog‘s recent headline took a different view:  Housing Predictions for 2014: Sales Will Surge

Among the reasons cited are (1) the number of first time home buyers are expected to rise, and (2) many move-up buyers, who have been trapped in their homes because of negative equity, will finally be able to make that move because of rising property values.

In addition, they are predicting that mortgage rates will increase significantly.  See the story here: Predictions for 2014: Interest Rates Will Increase Significantly.

What does this mean?  If you are a buyer who's been sitting on the fence, the longer you wait will diminish your buying power as interest rates increase.  If you're a seller, now is a good time to get your home on the market:  buyers are out there looking, inventory is low and you'll stand out rather than having to compete against so many more homes when the inventory spikes in the spring market.  

If this is the year you plan to buy or sell your home, give me a call.  Let's talk about your options.

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