2014 Housing Market
As we look at the housing market for 2014, if there is one thing almost every pundit agrees with is higher interest rates.
The Federal Reserve's $85 billion bond-buying program has kept interest rates at or near record lows over the last few years, but the central bank will start tapering its purchases in January, a move that some experts say will cause mortgage rates to increase. We will likely see mortgage rates move up in the coming months.
Prices of homes are commonly thought to increase in the coming year and most projections show a modest growth of 3 to 5 percent. I have not seen any forecasts including any dramatic increases like we saw early last year.
"I think it is safe to believe prices will be modestly higher this year than last."
While buyers may have to pay a bit more and have larger mortgage payments they should have more inventory to choose from in 2014. Low inventories last year often led to bidding wars which many potential homeowners lost to all cash investors. We should see more houses come on the market this year which will make it easier for buyers to "get into contract."
Some industry experts are predicting it will be easier to get a loan in 2014 as refinancing demand shrinks and lenders look for other sources of revenue. This is one prediction I will have to see it happen. Maybe too many years of restrictive lending practices by the big banks have me jaded? I believe buyers will continue to struggle to get loans approved.
"Because of the higher interest rates, we are seeing predictions of a lower rate of homeownership."
During the early 2000's, homeownership was approximately 70 percent. This year it could sink below 65 percent if the experts are right.
Finally, based on the buying frenzy we saw last year I believe there continues to be a pent-up demand for housing and there are many potential homeowners who were unsuccessful in finding and buying property. They are still there, still want a house and have been watching the market carefully. They will return this year as much more savvy buyers.
If you have questions about the local Sacramento/Roseville housing market, feel free to give me a call at the MagnumOne Realty office in Roseville (916-899-6571) or send me an email to firstname.lastname@example.org.
Print This Article
Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.
Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento
Placer County News HeadlinesPeople with Autism Especially VulnerablePerhaps like you, recently I read of an incident in Okeechobee, Florida, in which an 18-year-old man was recorded on video beating, choking, kicking, and holding a knife to the throat of a 16-year-old boy with autism.
54 Year Old Roseville Woman Killed with Own VehicleRoseville- 54-year-old Bernadette Ann Richardson was killed when her SUV rolled backwards as she was retrieving a bicycle from her 1997 Ford Explorer.
Photos: Napa Earthquake DamageWe recently had the opportunity to tour Napa following the magnitude 6.0 earthquake. The downtown area of Napa which contains many older buildings was hit especially hard.
California Senate Passes New Gun Violence BillCalifornia's state today passed the "Gun Violence Restraining Order (AB 1014)," legislation that would allow family members or law enforcement to petition a court
Laura's Law Implementation in Placer CountyPlacer County became the sixth county in California Tuesday to implement Laura's Law - a state statute that authorizes court-ordered assisted outpatient treatment of residents with severe
$22 Million Animal Services Center in Auburn Moves ForwardThe Placer County Board of Supervisors awarded a design-build contract on Tuesday that paves the way for construction of a long-planned Animal Services Center in North Auburn that
Autism in Girls Study Launched in CaliforniaAutism is far more common in boys than girls - affecting 1 in 54 boys and 1 in 252 girls - but little is known about biological differences between boys and girls with autism.
Sierra Shoot Out Water Polo Tournament in RocklinThe Sierra Shoot Out Water Polo tournament is back for another year at Sierra College. The junior college has hosted this high school tournament for over 20 years
What is Slowing the California Housing Recovery?Realtor, Julie Jalone of MagnumOne Realty in Roseville, writes about why the California and Sacramento housing markets are not expanding as fast as expected. Find out what Julie thinks is contributing to a slower real estate market.
Circus Vargas in Roseville this September Roseville,CA -- Get ready for the ultimate entertainment extravaganza for all ages as the circus comes to Roseville.
Hot Pink Fun Run in Downtown Roseville September 28thRegistration is now open for the 7th Annual Hot Pink Fun Run, a family-friendly run, walk and fun zone on Sunday, September 28, 2014.
Monty Python's Spamalot at Roseville TheaterSPAMALOT tells the legendary tale of King Arthur's quest to find the Holy Grail. However, diverting a bit from the true story, this hilarious musical