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.