Many Believe Sales will Surge in 2014

2014 Home Sales Predicted to Rise 10-15%!

Almost all of the housing experts are very "bullish" regarding expected sales volumes for 2014.  There are several factors at work here, and almost all are positive!

First Time Buyers

The soft economy over the past few years has prevented many would-be Buyers from leaving their parents' homes.  With jobs hard to find and incomes low, many young Buyers were either unsure that they could find/keep a well-paying job, or were not in a position to be approved by a mortgage lender.  In addition, most careful first-timers won't move ahead with a purchase unless they are reasonably certain that they can make the required mortgage payments and maintain the home for the foreseeable future.  All of this has slowed what experts call "household formation" over the past several years.

Decreasing unemployment (althouth still not as low as we all would like) is helping to alleviate these concerns.  Also, young Buyers are becoming more familiar with the expectations of the mortgage industry -- taking steps like checking with a lender several months before starting to look for a home (just to be sure there are no credit "skeletons" which need to be banished), getting a pre-approval before starting to shop and having a clear picture of what they can or should spend for a home.

If you're considering buying your first home, we would be happy to share our "first-time buyer" presentation with you or sit down with you to discuss the process!  Just give us a call, text or email.

Move-Up Buyers

Many people have postponed moving up to their dream home for two main reasons: 1) Declining home prices in many areas have left them "under water" in their current homes, meaning they would have to do a short sale (which precludes getting a mortgage for a few years) or bring a lot of cash to the closing table, or 2) With shaky economic conditions and fear of job loss, many prospective Buyers have simply elected to stay in their current homes, wary of taking on additional debt or a higher payment. 

Immigration

Who knows what sort of immigration reform will be passed by congress?  However, anything that is passed would likely lead to more immigrants being in a position to buy homes in the US over the near term.

Divorce

On a slightly darker note, many experts believe that unhappy couples have been staying together during the past few years due to economic uncertainly and concerns over being able to fund a second "household". As these concerns wane, separating couples will beging to buy more homes.

Interest rates

 Yes, this is the wild card.  The mix of government intervention and a soft financial market has kept rates abnormally low for the past few years -- sometimes even in the low threes.  A one-percent increase in mortgage rates is the same as spending ten percent more for the home you buy, when translated into a mortgage payment.  Most authorities think that rates will rise to at least five percent this year, and perhaps as high as six.  These are still very good rates when compared to the average of roughly 7% over the past thirty years.

In Summary...

All of this leads to a pretty positive outlook for 2014's housing market in the Louisville, Ky. area and surrounding counties!  If you're thinking of selling, now would be a good time to contact a Realtor (we suggest the Moorhead Team) to begin getting your home in shape to bring the highest price in this surging market.  If you're considering Buying, get a lender recommendation from us first, then engage a full-time, professional Realtor to help you find the best values and negotiate a successful deal on your dream home in a rising market!

If you're thinking of buying a new home or would simply like information on the market or certain areas of our Metro area and surrounding counties, please contact us below....

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