How Does the Rest of 2014 Look?
As we look back at the first half of 2014 we had a very slow start. Per CAR Market Snapshot, sales were down more than 10% for the first half of the year due to an increase in home prices, an interest rate hike, and lack of investment properties for the investors.
At the end of the second quarter we saw sales started picking up which was a good sign. The decrease in sales in June was the smallest since September 2013. Supply conditions in the housing market also showed signs of improvement when compared to the previous year.
With inventory improving and home sales slowly moving back up, the market is more balanced, and we can see further market normalization in the upcoming months as interest rates remain at the lowest level we have seen so far this year. Interest rates are projected to increase towards the end of the year, so sales should improve in the second half of the year as many primary home buyers realize this.
Home sales for the rest of the year are expected to be at about the same level as that of last year and a stronger economy should propel the housing market to bounce back in 2015. Now is the time to move forward with your real estate plans. The first step is to contact us!