2013 was a good year for the housing market. In fact, it was the best year I’ve had in real estate to date. New construction starts were the highest they’ve been since 2005 and many buyers flocked to buy these new homes.
Even though new construction boomed, previously-owned home sales dropped. Since most of my business involves resale homes, I started feeling this pinch in August 2013. Buyers were taken aback by rising home prices and sellers were experiencing longer days on the market. Presumably, factors to sell quickly or delay a home purchase altogether included rising mortgage rates, rising home prices, and the partial government shutdown.
It’s hard to say what 2014 will bring. I wish I had a crystal ball. Instead, I rely on lots of reading. The Fed’s recent actions may mean the economy is gaining momentum toward further recovery this year. The Federal Reserve announced in mid- December 2013 that they would begin cutting back on the $85 billion monthly bond buying program indicating that the economy is showing signs of standing on its own. Additionally, we should see a lot less home buying competition from investors. Good deals on auction homes, foreclosures and short sales are increasingly hard to come.
Forever the optimist, I believe the 2014 housing market looks promising. If you have any questions about your personal situation or would like to inquire about buying or selling a home, I’d be happy to assist you. Please contact me at (602) 882-JANA (5262) or janakaye@cox.net. You can also visit my website at www.janaharenhomes.com.
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