What Can You Expect in 2014?

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Today I wanted to talk to you about what you can expect in 2014. Just this past week, Chairman Bernanke made another announcement concerning tapering off the purchases of the mortgage-backed securities and bonds. We expected that interest rates might sharply go up again, although this time people had known this was coming since June and he is only going to taper the purchases by 8%. Bernanke also provided a long-range view of what to expect.

That being said, we hopefully won’t see the sharp and sudden rises in interest rates that did this past summer, but interest rates have crept up a bit. Also, after January 1st, many mortgage lenders will be under a whole new set of guidelines for processing loans and giving preapproval.

What does all this mean for you if you’re looking to buy or sell a home? If you’re a potential buyer, there probably won’t be any advantage in waiting. Inventory will most likely rebound and pick up in January-March which is a seasonal trend we always see from year to year, along with a rise in demand. This rise in inventory brings more competition compared to the fourth quarter of the year.

People are still predicting that interest rates will rise above 5% by the end of the year. With every 0.5% that interest rates rise, buyers lose 5% of their purchasing power. There is also enough demand in the Sacramento area where forecasts for equity appreciation range from 3-4% on the low end and 6-8% on the high end. We won’t see 2-3% appreciations per month the way we did before, but we won’t expect any decreases on the price side.

For sellers, everything we said about buyers affects you too. If you’re selling with the notion of moving as well, whether it’s moving in to something smaller or larger, there is no reason for you to wait either. Although prices are increasing, it isn’t enough to offset the rising interest rates. Furthermore, as this happens, your supply of buyers will be shrinking. The people who will be able to afford your home are buyers who had to back pedal and this makes your home look older and in worse condition than what they started looking at. If this continues into 2014, it will repeat what we saw last year.

I hope this information helps you make the best decision this year. Thanks and have a great day!

Why work with us?

Peter Parker and his team have, to-date, navigated approximately 600 successful transactions with over 100 years of combined experience in the real estate market. Their team provides you with more resources and different marketing benefits for you than any single agent can. This has resonated well with their clients, who have given Peter and his team many 5 star reviews and testimonials explaining how.

Their tested, proven method of selling homes helps his clients sell their homes for up to 18% more than the average Realtor using traditional methods. Their smart buyer strategies save their clients time and energy in finding the right home and getting their offer accepted. They want to help you save thousands of dollars both in your purchase and as a homeowner, just as they have done for hundreds of clients before.

Peter Parker
The Peter Parker Team
Greater Sacramento Area
Phone: 916.585.3636
peter@peterparkerteam.com

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Deandrea - "I saw the home we wanted, we closed on it, and then we were in the house within 30 days! When I saw this particular home, I fell in love with the picture and told Peter that I wanted to see it. I was able to get into the house within an hour and they even took us back 2 hours later after my husband got off of work and we were able to submit the winning bid. So the thing that impressed me the most about the team was that they were always there and absolutely responsive!"

Maria - "Peter was committed into seeing our transaction through the end and we were very pleased with his assistance. His entire team was responsive and available to answer any questions we had, even during non-normal business hours. There were a few evenings he made himself available to put some responses together and address any questions we had. He made himself available on the day of closing to make sure that everything ran smoothly and they truly delivered! "

Salwek - "The experience of selling our home with Peter Parker and his team went really well. Peter himself, is very professional and I really liked his demeanor. He was knowledgeable and we still get calls from our buyers saying what a beautiful home it is because they’re so thrilled with how everything went down. If we were ever to sell this home, we would engage Peter and his team immediately! "

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What Can You Expect in 2014?