It has been a few weeks since the New Year has started, so
how has everything been treating you? The holidays are starting to seem
like something from the past already...
Well, I am looking forward to an exciting 2014! It's always
nice to get that feeling of a fresh start with the beginning of a new year, and
still write 2013 by mistake from time to time.
Right now you are probably wondering what's going to happen
with the real estate market in 2014 right? Well no ever knows exactly
what tomorrow holds. However, let's try to peek ahead into the future
anyway because it's always good to have a plan, even if life never goes
according to plan.
I expect 2014 to be another great year for real estate and the only direction for home prices in the next ten years is UP, and UP! Don't get too crazy either. Home prices will most likely remain flat and only move up slowly in line with the normal inflation rate of 2%. Interest rates are up but there isn't a full job recovery, so that is going to keep many potential buyers out. Investors are starting to see their profit margins down so expect to see less all cash deals. That was one of the primary factors pushing prices up and now that investors are slowly leaving, that will soften up the prices.
I expect 2014 to be another great year for real estate and the only direction for home prices in the next ten years is UP, and UP! Don't get too crazy either. Home prices will most likely remain flat and only move up slowly in line with the normal inflation rate of 2%. Interest rates are up but there isn't a full job recovery, so that is going to keep many potential buyers out. Investors are starting to see their profit margins down so expect to see less all cash deals. That was one of the primary factors pushing prices up and now that investors are slowly leaving, that will soften up the prices.
You will still see the value in owning a home even without insane price increases, and so will everyone else. Home ownership is still attractive in America that will be keeping the market afloat. There are still new buyers entering the market everyday so expect it to continue remaining competitive! That will keep home prices stable and moving upwards, but this time at a more reasonable pace.
Let’s strategize if you are planning to make a move this year! Life never goes according to plan, but it is always still a good idea to have one. Call me today.
If you have any questions, feel free to contact James Y.
Kuang at (626) 371-5662 or by email -james.kuang@coldwellbanker.com
