Experts in the real estate market predict that the value of U.S. homes will increase by 3 percent in 2014, including in Temecula, CA. This increase in value will help current homeowners to sell their properties for a comparable price to the appraisal value of their current home. Although this means that buyers will have to pay a little bit more for a home in 2014 , the prices will still remain quite low compared to average prices 5 years ago.
2014 Predictions for Homeowners
On average, experts agree that the value of homes will rise by 3 percent in the year to come. This is good news for homeowners because it means that they will be able to get more money for their home if they choose to sell their home this year. Low home values have been problematic for many homeowners in the past several years, because when they sold their homes often for less money than they owed on the mortgage note. This means they did not receive enough money to pay off their current mortgage after the sale was finalized. In 2014, due to the rising value of many homes across the country, it will be easier for many homeowners to recoup their initial investment when they sell their property.
2014 Predictions for Home Buyers
2014 is also predicted to be a good year for real estate buyers. Mortgage rates are predicted to stay low, around 5 percent for new home loans. These low mortgage rates will help buyers qualify for mortgage loans to buy new homes. The supply of new homes on the market is predicted to be plentiful across the nation, due to historically low home ownership rates. In fact, experts predict that home ownership rates will be at the lowest level over the last 20 years in 2014.
What to Expect for Temecula Real Estate in 2014
As foreclosures take a steep fall in the market and consumer confidence rises, more and more houses are expected to hit the market in 2014 (especially around the Temecula Valley area). Homeowners are finally able to recoup their home’s equity by selling for a value that is equal pre-bubble rates. They feel more confident that they can make a return investment now, which will leave more housing options open for buyers.
Though mortgage rates are expected to continue climbing (most likely to 5%), they are still below their original level before the real estate bubble. Buyers are able to find low mortgage rates with loosened restrictions, meaning more shopping across the market — which is great for homeowners. Overall, 2014 should see a real boost in home ownership and sales. The key is to act now before the market shifts to one side over the other.