Jan 22, 2014
We are just a few weeks into the new year and already analysts are making their predictions on how the real estate market will fare in 2014.
According to a recent article I was reading, real estate is expected to change in four key ways this year.
If you’re considering entering the market anytime soon as a buyer or seller, you’ll definitely want to check out today’s Wake County real estate blog to make sure you’re up-to-date on these changes.
What You Can Expect from Wake County Real Estate in 2014
Experts believe that real estate will change in four key areas this year:
First, fixed rate mortgages are expected to climb to climb to above 5 percent in 2014. Although this is higher than it’s been, it’s still at a historically low level. Experts believe that by the end of the year, you could see rates hovering around 5.65 percent.
Second, markets and home prices are expected to stabilize. In 2013, we saw an increasingly competitive real estate climate with more bidding wars than in years past. This was further supported by pent-up demand driven in part by low mortgage rates and low home prices. A steadier job market as well as a general sense of optimism among the American public helped. This drove activity in 2013. This year, we’ll see some stabilization as the market settles and finds somewhat of an equilibrium. On the outside, this will look like flattening gains when it comes to home prices, higher inventory levels and more consistent mortgage rates.
Third, you’ll see more regulations when it comes to securing a mortgage. For instance, there’s a new “ability to repay” rule that makes it the lender’s responsibility to make sure a buyer can cover their monthly mortgage payments. This will likely result in more scrutiny from the mortgage lending side, which could mean that it takes longer for you to secure a loan. Plan accordingly!
Finally, refinancing activity will be low in 2014. Since mortgage rates are already near rock bottom, there will not likely to any rate-and-term refinance demands left. The only people who may want this option will most likely be those who want to trade old higher-rate long-term loans for lower-rate, shorter-term loans.
We Can Help You Navigate the Wake County Real Estate Market
Whether you’re interested in purchasing a home on the Wake County real estate market or selling your current home, we’re here to help!
Contact us, the Rachel Kendall Team, today to receive expert real estate advice as well as valuable resources tailor-made for your needs.
We’re your dedicated real estate experts in Wake County and we can help you get the outcome you want on the local housing market!
Until next time,
Rachel