If you’ve held off on selling your home because you’ve been waiting for its value to return to pre-2008 levels or for the demand to come back, this might be the year for you to finally make your move. A number of signs indicate that 2014 will be a good year for the housing market. Things might not return to where they were before the recession, but this year is expected to be the start of a turnaround in the market.
Prices set to increase
Home prices are on the rise, which means you’ll get a better price for your home if you try to sell this year compared to years past. In Atlanta, for example, the average price of a home increased by nearly 17 percent from January 2013 to January 2014, according to the Atlanta Business Chronicle. Prices of homes in Atlanta have made a recovery of 23 percent since the lows of 2012, and are currently selling at about 20 percent of the peak prices seen in 2006.
Mortgage rates set to go up
Although mortgage rates are still low, they are expected to increase this year. The notion of rising interest rates — even though rates are currently less than 5 percent, on average — might be what convinces a number of buyers to get out there and find a home. If you are selling your home, listing it early in 2014 before mortgage interest rates increase may be a good idea.
Already, mortgage interest rates on a fixed rate loan have increased from where they were a year ago. In 2013, rates hit record lows and were slightly less than 3.5 percent for a 30-year mortgage, according to data from Freddie Mac. By the end of 2013, rates were up to 4.5 percent, which is still a great rate when you look at what interest rates were like 10 or 20 years ago. Buyers who want to lock in rates before they creep past 5 percent might be ready to act this year.
Inventory is still pretty low
The number of houses on the market also works in the seller’s favor. When it comes to selling your home, it’s all about supply and demand. The fewer houses that are on the market, the better the price you can expect to get as a seller. If developers start building new homes again or everyone decides to list their homes at once, demand for housing will go down as supply goes up. It’s better to list and sell your home before the supply of houses available outpaces the demand.
If you decide that 2014 is the year you put your house on the market, pay attention to sales and listings in your area. Price your home in line with what similar houses in the area are going for, and you should be able to find a happy buyer quickly.
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