Up or Down? Real Estate Market Forecast for 2014

Whether you are a prospective buyer or seller, the question is the same - Should I wait to... buy/sell?

Buyers typically are hoping prices will inch downward again, while sellers are trying to get the most money out of their home sale. Both absolutely valid concerns.

Recently during a real estate seminar at the San Diego Association of Realtors in Kearney Mesa, four seasoned real estate professionals set out to answer these concerns.

Overwhelmingly, they predict home prices will rise in 2014 by four to six percent, while in 2015 they will rise at an even greater rate.

"Buy now before the rocket takes off," said SDAR Board of Directors President Leslie Kilpatrick who works with Willis Allen Real Estate.

Very little inventory and a large amount of buyers make it a seller's market right now, at least in San Diego County, and although it seems like bad news for buyers, there is a silver lining.

Interest rates are still at low rates. It might not be the average 3.34 percent seen in 2013 for the average 30-year-fixed mortgage, but at the current 4.53 average, it is still low in comparison to the historical average for a 30-year fixed is about 7.5 percent.

Not to mention, rents are expected to rise by a drastic 20 to 30 percent by the end of 2014, according to Charles Hoffman President with ACI Apartments and speaker at the SDAR seminar.  

All in all, the time to act is now. These real estate magnates all agreed we, real estate agents, must encourage buyers and sellers alike to get off the fence before prices go up even further because regret isn't a feeling agents want you to have after our work together is complete. We want you to enjoy the buyer and/or selling experience and be happy with your choices and with the guidance we provided.

Good luck in your real estate path wherever they lead.

Choosing YOUR home: Steps toward homeownership

This is Part Three in the series - Steps to Homeownership

The fun part of home buying is beginning... time to shop.

By now, you've gone through the anxiety-ridden decision to buy and the tedious pre-approval and pre-qualification process. Armed with your price range, it's now time to determine your wish list and not just the if price were no limit wish list. You need to consider what your needs are versus what your wants are. Here are a few of the homebuying parameters you should narrow down before you begin the search.

Settle on neighborhoods

Decide where you want to live. A great place you can get started is on my website, www.ComeHomeSoCal.com, where you can research market stats, crime reports and feeder schools by zip code. Another great site to determine school rankings is www.GreatSchools.org. Determine a few neighborhoods where you would like to live and let your real estate know the verdict. He or she can set you up on the MLS database to receive daily listings of all the homes in your price range and areas with the number of bedrooms and bathrooms you desire.

Narrow the wish list

Your wish list can help to remind you which features are absolute requirements and which amenities you'd like to have. Some things to consider types of homes and home purchase considerations.

Types of homes: Single-family homes, multifamily homes, town homes or condos, etc.

• Single-family homes, being the most common, is a freestanding dwelling and can also be referred to as a detached home.
• Multifamily homes can provide rental income that can help in the cost. They can also be called duplexes, triplex and quadraplex. Many mortgage plans, including VA and FHA loans, can be used for buildings with up to four units, if you, the buyer, intends to occupy one of them.
• Condominiums are another choice and with a condo, you own "from the plaster in" just as you would a single house. You also own a certain percentage of the "common elements" - staircases, sidewalks, roofs and the like. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowners association administers the development.

Home purchase considerations

• You should definitely weigh your needs, budget and personal tastes in deciding whether you want a home that’s a newly constructed home, an older home or a home that requires some work -- a "fixer-upper."
• How many bedrooms do you need versus want? Square footage? Amenities, such as a pool, fireplace, garage, etc. Decide what are your must-haves versus your wants. 

Bottom line is you and your family. It is currently a seller's market. There isn't much inventory out there and there are many, many buyers searching. During this process, it's important not to lose hope. The right house will come but with this market, it might take time and sometimes it will take no time at all. 

When you've found the right home, you must act quickly. In a seller's market houses go quickly and many times same day, so when you see your dream home, don't let it get away. Work with your real estate agent to make sure that house will become your future home.

Happy hunting.

This is Part Three in the series - Steps to Homeownership

Part One: The Big Decision - Are you ready for homeownership? and Part Two: Discovering your price range: Steps to Homeownership can be seen below or https://katyschusterrealtor.blogspot.com