Housing market rates are on the rise with the Feds decision to taper Quantitative Easing. The Inventory levels are still low and the number of buyers in the marrket is unreasonably high. This is the recipe for prices rising further.
If I knew exactly where the market was going to be and had a crystal ball I would be a gazillionarie. Unfortunately, I dont have a crystal ball and we have to deal without the gazillionaire part. I’m not one and I am going to give my best inputs based on past performance and current market conditions for newbies .
Lets summarize where we came from, Year 2013 we had anywhere from 30-45% increase through out the bay area, thats a huge huge increase. Year 2012 – we had 8-15% increase around the bay area. Now, that is 2 consecutive years of very big appreciation. Historically we only have about 3 or 4% per year. So with that huge amount leading us off to 2014, I think we will be fortunate if we just maintain a flat even growth. Actually, that will be outstanding. We’ll probably get a little bit of an increase because there is still tight inventory, there is just not enough homes for the demand that is out there. So we can see some modest growth but overall I think we would be lucky by the end of 2014 saying, hey we had 0% growth cause it just means we did not LOSE any growth 🙂
A huge factor of momentum from this year and next year. and thats what we see right now. Historically, winter is a very dead time to the market. It’s not very dead this season. Interest rates are still very very low plus there is just limited inventory which keeps the demand high and prices are here to stay. It’s a perfect time to buy and sell. Simple reason is that Interest rates are super low and if you’re out there applying for a regular type of conventional loan or even FHA loan you’re in the mid to low 4%. Historically that is very very low. So that makes it very affordable to get your feet wet in the market. It is also a good time to sell becuase there is demand and there is less competition. If you want to sell your home and and not have it on the market for 2-4 months, a golden time to sell with multiple offers flooding your way.