There are some fundamental variables that will shape the 2014 Real Estate Market. I have written down some of my thoughts below.
- It is going to be a bumpy ride for mortgage rates in the first half of 2014 as mortgage lenders try to figure out how to comply with the new qualified mortgage rules taking effect in January 2014. The lack of clarity could mean a tightening of mortgage lending until the mortgage industry shakes out the details of the new rules.
- Tapering is not just for Wall Street. When The Federal Reserve announces that it has cut back its buying of mortgage backed securities, expect a bump up in interest rates.
- Expect longer processing times.
- There will be more rejections based upon interest rates rising thus meaning more contracts written on home purchases likely to fall through. Your Real Estate Agent is going to be highly crucial in 2014. You will need experience to navigate the real estate market and all of it’s nuances.
- 2014 is likely to be a stable year in terms of home sales, inventory and price changes. Pockets in Northern Virginia will sell faster than others and creating a solid pricing strategy will help in moving property.
- Rock-bottom inventories helped push up home prices in 2013. Expect an uptick in home prices for most of Northern Virginia but not at the rate as 2013.
- Millions of previously “underwater” homeowners have crossed over into positive equity status in recent quarters, giving them a shot at selling their home. This will help in keeping the inventory at a healthy level.
- Unless rates spike (Which the Fed won’t let happen) or Wall Street sees a large stock market correction, supply and demand of home inventory should make 2014 a good year.
703-485-4663
