Will the prices countuied to rise in 2014?

Asked by Sherry Bakus, Oakland, CA Sat Dec 28, 2013

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Michael Proc…, Mortgage Broker Or Lender, Modesto, CA
Thu Jan 9, 2014
That is a great question, most analysts predict the market will continue to rise in 2014. If you are thinking about purchasing do not miss out on this opportunity to buy low. Good luck!
0 votes
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Sun Dec 29, 2013
I believe that 2013's gains in many areas of CA will prove unsustainable. Yes, we may see increases that are more tempered, but overall, I think that buyers and sellers need to be aware of the fact that higher rates, more restrictive access to credit (thanks to the Dodd-Frank regulations taking affect in two weeks) and Washington's continued but confused assault on Fannie Mae, Freddie Mac and the FHA won't help.

Buyers tend to exhibit a herd mentality. They buy when others buy, and not when prices are on the way down. This is not necessarily their fault, but we have to expect that if sentiment changes because of any or all of the above, it's realistic to assume that appreciation rates would cease to move at the same clip.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes
John Souerbry, Agent, Fairfield, CA
Sun Dec 29, 2013
Where? Some areas have not hit bottom yet, others will definitely continue to improve in average value throughout 2014.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Sun Dec 29, 2013
Predictions are very difficult, especially about the future.
0 votes
David Poulsen, Agent, San Francisco, CA
Sat Dec 28, 2013
Hi Sherry,
National home prices have risen between 5% and 13% over the past year, depending on which price index is used. White-hot markets in the West have seen home prices rise as much as 25%.
Economists say such heady gains aren't happening again.
As a point of caution, the consensus opinion on housing has underestimated the market on the upside and downside throughout the recovery. The real-estate market has been more volatile over the past few years than in any postwar period.
Indeed, many experts have predicated their forecasts for modest price gains on interest rates rising and buyer competition thinning out. The inventory of distressed sales like foreclosures and short sales is in decline, so the bargains are mostly gone.
Sales of new and existing homes have slowed since summer's end. The pace of further interest-rate increases in 2014—and the market's ability to digest those—will play a major role in validating the recovery that began two years ago.
I hope this helps.
Thanks,
David Poulsen
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