1.) Mortgage rates: Interest rates will likely be on the rise next year. In recent weeks, the 30-year fixed-rate mortgage has dipped below 4 percent. But by next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of the year.
2.) Home prices: By the time 2014 wraps up, home appreciation will likely have slowed to 4.5 percent this year from 9.3 percent last year. Appreciation is expected to drop further to an average 3 percent in 2015. ʺContinued house-price appreciation and rising mortgage rates will dampen affordability for home buyers,ʺ according to Freddie economists. ʺHistorically speaking, that's moving from 'very high' levels of affordability to 'high' levels of affordability.
When the market started to self correct this was expected. We had a larger percentage of appreciation to auto correct, last year it was closer to the standard 3%. In 2015 we are expecting the market to continue to level out at the 3% appreciation.
3.) Housing stats: Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.
4.) Availability of the ʺgood dealʺ is going the way of the dodo bird. There are fewer and fewer short sales and foreclosures. Those AMAZING deals are becoming much more scarce. Low ball offers are not tolerated. Sellers are pricing their homes well and expect to sell their home for what it's worth!
That's part of the reason why we want our sellers to participate in our Certified Pre-owned program! They price it right the first time and don't necessarily have to negotiate with a buyer!
5.) We are coming into the busy season!!! For sellers it means now is the time to list. Prices will start to go up as the demand for homes goes up! Our inventory is still low but it's definately on the rise. For buyers it means when you're serious and you find a home that you like DO NOT hesitate to make an offer. If you like it someone else does too!
As a buyer if you end up in a multiple offer situation there are ways to make your offer stronger and more appealing! Make sure you're not only pre-approved but find a lender who will PRE-UNDERWRITE you're loan. That makes your offer almost like cash! The larger the binder the stronger your offer. Not to mention a buyer letter. Make your offer personal.......not just a bunch of numbers on a contract.