SWIM and Company thoughts on the 2014 market …. Happy New Year and there will be good tidings for our Lamorinda real estate market! All indications suggest that 2014’s housing market will be robust and supply will continue to fall slightly short of buyer demand for quality homes in our fantastic communities. The principal components which will continue to fuel this recovery are that our San Francisco Micro economy is in full recovery, being led by our diverse employment sectors of Tech, Finance, and Bio-Tech. Of course, most of the local support sectors such as construction, marketing, sales, and supplies are experiencing improved economies too. For these financial reasons, and the fact that Lamorinda is the best place to live in the Bay Area, demand for our housing will be very high this year. It’s time to get ready to make your move! Lets see what the some of the top Real Estate Search sites are predicting for 2014:
(photo:money.cnn.com, Doug Caruso)
TRULIA, a real estate search site, is predicting that INVESTORS ARE STEPPING out of the market more this year due to rising home prices and less of a profit margin. This should leave it open for repeat home buyers. With the rising home prices encouraging home owners to sell and move up the ladder, it should help to increase inventory. EASIER FINANCING – Rising interest rate are slowing the refinance market which in turn is causing banks to ramp up their purchase lending. Also the new mortgage rules coming into effect in 2014 may make the mortgage companies more eager to lend. Go to the full article here https://trends.truliablog.com/2013/12/housing-predictions-2014/ .
REDFIN CEO, Glenn Kelman predicts INTEREST- RATE shock. Citing that when polled 83% of US homebuyers believe a normal interest rate is below 5%. Actually, prior to 2008 the 36 year average was 9.2% and never below 5.8%. So yes, that would be a shock for 83% of homeowners. Redfin also predicts “SMALL IS BEAUTIFUL” meaning Americans will be choosing smaller homes rather than chasing rising prices and “ONE BIGGER, HAPPY FAMILY” where two master bedrooms are the focus of homes being built in 2014. Focusing on the parent, children and grandparents all living under one roof. Sound interesting? Full Redfin article here https://onforb.es/18R8njw .
ZILLOW is a little more conservative on their predictions – They predict mortgage rates will reach 5% by the end of the year (2104), we’re inclined to agree. Despite these higher mortgage rates actually getting a loan will be easier. Also, because of the higher interest rates some markets will become unaffordable… AGREED. Zillow also lists the 2014’s hottest housing markets. I’ll give you a hint Lamorinda is not on it, but a local city is… https://www.zillow.com/blog/research/2013/12/05/zillow-2014-housing-predictions/ .