Top four dif­fer­ences be­tween 2013 and 2014

Sun Sentinel Broward Edition - Homespot - Broward East - - REAL ESTATE Q&A LIVING G SPACES - By Sa­man­tha ( Sam) DeBianch

Last year, 2013,

was a roller coaster year in real es­tate with prices go­ing up, in­ven­tory go­ing down, and peo­ple left with un­cer­tainty of how and when to buy or sell a home.

With all that said, you can’t make good de­ci­sions for the fu­ture if you don’t learn from your past. Q.

What are the top four dif­fer­ences be­tween what hap­pened in 2013 and what is pro­jected to oc­cur this year? A.:

Those dif­fer­ences are price gains, mort­gage rates, the buy­ing pool, and in­ven­tory.

• Price Gains

From Oc­to­ber 2012 to Oc­to­ber 2013 we ex­ceeded pre­dic­tions as we saw price in­creases na­tion­ally of about 14 per­cent (in South Florida we saw a 15.8 per­cent in­crease dur­ing this time pe­riod). We haven’t seen a price gain like that since Fe­bru­ary 2006. What’s in store for 2014? There are fore­casts of price in­creases in the sin­gle dig­its from 4 to 6 per­cent.

And what does that mean for you? As a seller, sell while the mar­ket is hot. And as a buyer, buy if you can and while you can. • Mort­gage Rates In 2013 we saw rates start­ing in the 3-per­cent range for a 30-year-fixed and mov­ing up­wards of 4 per­cent. In 2014, we are start­ing in the 4-per­cent range and pro­ject­ing to move up­wards of 5.5 per­cent

What does this mean for you? As a seller, price your home to sell. As prices and rates in­crease, more peo­ple are go­ing to pull out of the buy­ing pool as they will not be able to qual­ify or it sim­ply will no longer make sense for them to pur­chase a home. As a buyer, it’s time to make moves to lock in a great rate and not miss out on your win­dow of op­por­tu­nity. • The Buy­ing Pool In 2013, we had a buy­ing pool made up of first-time home­buy­ers (28 per­cent), cash buy­ers (31 per­cent) and in­vestors (19 per­cent). In 2014, we will see first­time home­buy­ers dwin­dle with higher rates and prices, in­vestors pull out be­cause they are no longer see­ing a re­turn on their in­vest­ment, and re­peat home­buy­ers mov­ing into the game now that they are see­ing pos­i­tive eq­uity in their cur­rent home and can ac­tu­ally sell their home and qual­ify to buy another. • In­ven­tory In­ven­tory was at all­time records lows in 2013, leav­ing you with a “Hunger Games” strat­egy to go out there, fight the bat­tle of a “bid­ding war”, and beat the com­pe­ti­tion to get your of­fer pre­sented and ac­cepted.

In 2014 we will slowly see more in­ven­tory on the mar­ket with new con­struc­tion (which will also slow down dras­tic price in­creases) and fewer buy­ers in the game.

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