If you’re looking for a home right now, you know that it can be a struggle. Much of 2013 has been a seller’s market. A shortage of housing inventory has led to potential buyers engaging in bidding wars and having to fork over more cash in order to secure the home of their dreams. Sellers on the other hand, don’t really want to see market conditions change. Their homes have been on the market for record amounts of time, if it all, before being sold. A main reason for the shortage of available houses is a result of the recession. Many people who faced foreclosures are now eligible for housing loans. This means the market is saturated with buyers. So, if buyers are struggling now, what’s going to happen in 2014? It’s hard to say for sure but based on recent behaviors of the market, it is possible to make some predictions.
An abundance of buyers has meant that housing prices have been on the rise in most major cities across the country. Buyers are fighting to get their top pick of homes so they are often offering more than the asking price. Some forecasts expect that property prices will jump 2.3 percent in 2014. This has been great news for sellers but the continuing price hike isn’t expected to last. If housing prices continue to go up, eventually people won’t be able to afford to purchase property and the buying trend will slow down. Experts predict that the upswing will last through the end of 2014. At the end of the last quarter is when we will witness the most significant decline.
Another repercussion of increased housing prices is the fact that loan rates will also go up. Right now many potential homebuyers are happy to be presented with rates that are at a low that hasn’t been seen recently. However, this trend won’t last forever either. Experts are predicting that 30-year rates will climb as high as 4.6 percent by the end of 2014.
If you are only casually thinking about selling, now is a good time to make final improvements to your home before you put it on the market. If you wait too long and 2014 comes and goes, you could find a real estate market that has a completely different climate. If you are a casual buyer, you could go either way in this market. Buying now will allow you to take advantage of low mortgage rates, however, you will have a lot of competition in the market. If you wait, you risk higher mortgage rates but you could also see some lower prices for homes. Whether you are a buyer or a seller, if you decide now is the best time to act, don’t procrastinate. The market is unpredictable and while experts can forecast numbers, there’s no telling what the real estate market will actually look like a few months from now.