2013…gone already? It certainly flew by! It was a great year in the Elk Grove real estate market, with our home prices climbing 27% year over year. Inventory was down to start the year, and then as homeowners realized they had more equity than they realized, inventory went up. We ended the year with still only 2.5 months of inventory on the market in the Elk Grove real estate market.
So what’s up for the 2014 real estate market in Elk Grove, CA? 
Making predictions for the future is always difficult, especially when we have just come out of such a volatile, interesting real estate market. The new year should be a little more gentle to Elk Grove home buyers. It looks as though there will be more inventory coming on the market as soon as we get through the holidays. We are getting calls every day from homeowners discussing selling their homes at the beginning of 2014.
More informed consumers
I think both home buyers and home sellers are becoming more and more informed with the real estate process. The internet has helped this and consumers are smarter about using it to educate themselves. Consumers should look for agents and real estate companies helping to educate them even further.
Consumers in 2014 will be using their smart phones more to find both properties and agents. All information will be accessed 24/7 in every conceivable environment. The professionals who understand and act on this will dominate 2014.
Supply will continue to struggle to keep up with demand
Although it appears that supply will continue to increase as we approach the Spring real estate market in Elk Grove CA, demand will continue to be strong. We have seen the past few months, buyers are still getting out bid on homes they wish to purchase. We ended the year with about 2.5 months of inventory, making it still a seller’s market. If homes are priced correctly, in good condition and marketed correctly, they are still selling in under 30 days. As soon as Christmas was over, the phones were ringing much more often with buyers interested in purchasing in 2014!
Changes in financing
Regarding what is going to happen with our mortgage industry and home loans, according to Rick Sharga, executive vice president, Auction.com - “I’m afraid we’re going to run into some mortgage issues in 2014 that are going to be major impediments to growth. Interest rates, especially in light of the Fed’s decision to begin tapering of the QE program in January, are likely to go up — probably to 5.5-5.75 percent by the end of the year. Credit availability will be extremely tight at the beginning of 2014 as the CFPB’s new lending rules go into effect. Major banks are likely to focus exclusively on QM loans — which many borrowers simply won’t qualify for — and jumbo loans to ultraqualified, high-net-worth borrowers who the banks would like to have as customers for other products and services.”
For predictions on prices, interest rates and more, check out Part 2 of Elk Grove Real Estate Market Predictions for 2014.
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