What is Going to Happen to the Housing Market Next Year 2014

By
Real Estate Broker with Keller Williams Realty - Westlake Village, CA BRE# 01874717
http://actvra.in/48q9

What is Going to Happen to the Housing Market Next Year 2014

At just about every get together, and especially every holiday party this year, I get stopped and cornered for a question and answer session on what is going to happen to the housing market next year 2014.  I expect these quizzes and really enjoy sharing various statistics, industry trends, and the actual current market conditions in Agoura Hills, Oak Park, Westlake Village and Thousand Oaks.

The discussion can be from the very surface to the deep numbers, depending on the audience.

Generally speaking, in my opinion, there are 3 major factors to pay attention to next year that will affect the housing market right on its face.

1.  Interest Rates.  The government bond buyback program (i.e. quantitative easing) has been ongoing for over two years and has had the expected result of keeping interest rates low and in check. The government has been purchasing approximately $85 billion in bonds a month to free up bank balance sheets and allow them to lend more more at lower rates, with the fed fund rate charged to banks remaining at zero. Various experts have predicted an interest rate increase through 2014 to around 5.5% as the government begins to taper this program.What is Going to Happen to the Housing Market Next Year in 2014

2.  Housing Demand.  Everyone can see it. The demand for housing remains incredibily high as the 2013 year home price increases have brought out a significant number of under water homeowners back into some equity and they are making a move. However, in certain areas, inventory still remains low as people are in a bit of a wait and see approach to how 2014 is going to turn out. Especially with the Federal government issues and Obamacare.

3.  Interest Only Loans.  There were a large amount of interest only, high loan to value loans that were placed between 2004 and 2007. The loan terms were typically 5, 7 or 10 years in length. We have seen the stress in the past of the 5 year interest only loans coming due but have yet to see the 7 and 10 year interest only loans that will be expiring between now through 2016. These loan programs will likely not be available in the same design they were in the past and will bring about a potential inventory of homes for sale in order to get out of that situation.

The above is the framework for most of my holiday discussions this year. We are very excited about what 2014 holds in store and expect a vibrant housing market regardless of interest rate increases.

What is very interesting is that the various factors affecting the housing market right now begin to equalize themselves and create sustainable market conditions.

HAPPY HOLIDAYS!!!

What is Going to Happen to the Housing Market Next Year 2014

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate Market Trends
Location:
California Los Angeles County
Groups:
Keller Williams 'Rainers
HyperLocal Neighborhood and Community Posts
Posts to Localism
Addicted to Active Rain
Local Expert
Tags:
housing market 2014

Comments 32 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
172,066
Jay & Michelle Lieberman
Your Home, Family, & Investment. We Understand.
Keller Williams Realty - Westlake Village, CA

Charles:  Best wishes to you.  We can only make educated opinions.

Irv:  I believe there will be more units available as some interest only loans will be coming due.

Carla:  I would agree normally that increase in rates will bring down values. But IMHO I believe the demand is much stronger and will offset that interest bite a bit.

Richard:  Maybe the new lending rules coming out in Jan will help being that the banks at least know how the government is allowing them to lend and under what conditions.

David:  LOL. Every year is better or worse by some margin.

Ed:  I am hearing everything pointing to the opposite, higher rates in 2014 and there on.

Will and Pamela:  keep the faith!

Elizabeth:  You may be suprised by the potential for additional inventory if rates do increase and those IO loans start funneling into the market.

Andrea:  Happy holidays to you.

 

December 23, 2013 04:29 PM
Rainmaker
319,247
Steven Nickens
R(S)GRI ABR, Maui Real Estate Hawaii
Island Sotheby's International Realty

Great article, I hope the rates stay down in 2014, we will see.

December 23, 2013 05:08 PM
Rainmaker
160,602
Jimmy Faulkner
The Best Of St. Augustine
Florida. Homes Realty & Mortgage

People need too eat and have a roof over their heads and that is why home prices will continue to rise. A corrupt gggovernment and banking system is the cause of the   downward swing.

December 23, 2013 07:42 PM
Ambassador
865,142
Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

I hope your 2014 will be fantastic and you have a very Merry Christmas.

December 24, 2013 05:36 AM
Rainmaker
172,066
Jay & Michelle Lieberman
Your Home, Family, & Investment. We Understand.
Keller Williams Realty - Westlake Village, CA

Steven:  We have already seen a small blip up in rates on the news late last week that the Fed will be tapering the bond buy back just slightly.

Jimmy:  Housing is a bit like napkins. People will always need it at some point.

Debbie:  Happy holidays to you!

December 24, 2013 09:10 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
172,066

Jay & Michelle Lieberman

Your Home, Family, & Investment. We Understand.
We Want Nothing More Than to Help You
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information





"There is really something special about walking out your front door in the morning in Agoura Hills CA and smelling nature in the air."

LIKE WHAT YOU ARE READING.....SUBSCRIBE NOW.

Jay Lieberman reviews

Jay Lieberman - Broker at Keller Williams Westlake Village



Free Home Estimate
Interested in selling your home? Contact me to get a professional estimate.
Profile picture for JayandMichelle
Jay Lieberman
Call: (310) 502-3885