Happy New Year from Scott Neal Real Estate!
We hope that everyone will have a great year and accomplish whatever you set out to accomplish! I personally have been able to create a great business with dedication and a good plan. Each and every day we are working towards serving our clients better and helping more families buy and sell real estate in the Dallas area.
Here are my Market Predictions for 2014:
Inventory will continue to stay below 4 months.
Normally, 5-6 months worth of inventory is considered a "flat" market; it is either a seller's market nor a buyer's market. Over 7 months is a buyers market; there is more to choose from and less competition for housing. It's when the market starts to dip below 4 months that things start heating up.
In 2013 we saw a shortage of inventory which lead to one of the best real estate markets nationally since before the crash of 2008. I believe 2014 will be very similar to 2013.
Buyers will be paying higher prices.
2013 saw some areas increase by more than 10% in median prices. Buyers routinely encountered sellers less willing to accept offers less than asking or with large closing costs contributions. And with less inventory in the market and more buyers, some aren't willing to take a chance and miss out on a good home.
Sellers will see multiple offers within the first few days on market.
Spring 2013 was a strange time in real estate. I talked to some "old-timers" who told me they had never seen such a frenzy. Interest rates were at all-time low's, inventory was almost non-existent in some parts of town, and buyers were being caught in an emotional bidding war to grab up the only houses for sale.
I can see how this will happen again this Spring and Summer. Buyers, be prepared. Sellers, get ready.
Interest rates will rise.
This topic had been the talk of the real estate industry throughout 2013. The economy is gaining strength, consumer confidence is growing stronger, and housing is leading the charge. The FED was keeping interest rates artificially low when they were in the 3's, but now we are expecting to see rates rise to the mid-5's and maybe even into the 6's. Every time mortgage rates rise, the cost to purchase rises too.
If 2014 looks like the year for you to get into the real estate market, give us a call to help!
Scott Neal Real Estate
Buyers: Start your home search at http://www.mydallashomefinder.com
Sellers: Get a FREE home evaluation at http://www.mydallashomefinder.com/homevalue/