So what’s up in real estate for 2014??

Well, it’s January 2014 and it seems we are back to work. I have been getting some phone calls asking for info on selling and I have buyers ready to move if we can find them a place to move to. Inventory is still low in the lower price points (like under $300K) and it is taking about 90 days on market to sell.

So, where are we going? I have been telling folks for the last couple of years that things are getting better. In spite of what the news reports we really are on the way up.

2012 was a year of recovery. We got a floor under the pricing of homes, began to clean up the foreclosure and short sale mess and stumbled along on the bottom for the last 6 months of the year. I have clients who bought in the summer of 2012 and did really well with some investments.

2013 was a better year and I would say most (not all) of the folks that bought in the last 10 years were no longer under water. Pricing was not back to the pre-recession values but sellers could move if they had to. I advised people to sell if they were ready and let the new house enjoy the appreciation that was coming and that worked for many of my clients.

2014 is poised to be a year of growth.

‘This chart shows the coincident index for each state. Remember that real estate is always a local story so note that Georgia is dark green. That’s good. “The coincident indexes combine four state-level indicators to summarize current economic conditions in a single statistic. The four state-level variables in each coincident index are nonfarm payroll employment, average hours worked in manufacturing, the unemployment rate, and wage and salary disbursements deflated by the consumer price index (U.S. city average).”

There is a lot more data coming in the next few days so check back and see where we are going. Bottom line, the expectation is that prices will continue to rise modestly, interest rates will be going up some and inventory will continue to be a challenge in some price points.

If you are thinking about selling and want to know what your house is worth today and what it will be worth in the next year, please call or email me. Even though prices are increasing, the interest rates going  up will make it a challenge for some of the buyers interested in your house and it will make it tougher on you in buying the replacement house unless you are able to pay cash. Did you know that about 30% of all homes in the US do not have a mortgage? We are a prosperous country and our economy is improving. It’s slower than it should be but the pent up demand is finally overwhelming the uncertainty in the market.

We have millions of new households that are going to be forming over the next 2-3 years and that will drive up prices and interest rates so if you are ready, don’t wait. I’ll have more on all this tomorrow.

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