Market report. What to expect in Silver Spring in 2014
As we begin to shake of the cold and look forward to the spring selling season in Silver Spring and surrounding areas, I would like to talk a little about where the real estate market is currently and what I look to see coming for 2014. I want to also examine the factors that I think will affect the market in the long term.
Personally, I expect the coming year to be a good one for home sellers and for home buyers. How can that be for both sellers and buyers? Well for buyers, although home values in the area have gone up for the past few years the increases (unless you are looking in DC) have not been dramatic and housing values compared to five years ago still are fairly low. There are not so many "steals" out there as in the past few years but there is plenty of value and I expect any home sold this year to appreciate over time and prove to be a good investment overall. The bad news for buyers is that interest rates have gone up from last year. With the improving economy both locally and nationally it is impossible to sustain the super low interest rates that we have seen in the past. However, rates are not expected to go up sharply this year and should remain in the 4.5% range. This is an excellent rate and well below the historical average for the past 30 years Having worked this business since 1985 I think any rate below six percent is pretty darn good.
For home sellers it should be a good year as well. Homes in Montgomery county are steadily appreciating. Appreciation has been stronger in the western portion of the county but Silver Spring. especially those neighborhoods near the beltway and metro, is doing just fine. Our biggest problem today and this will benefit those who are considering selling is that the inventory of homes on the market is very low. The active homes on the market for this past December was the lowest that I have seen in quite a long time. This translate into demand as the weather and market heats up. I will say this and it was true at this time last year, any home that is in top condition and not overpriced is selling very fast. Multiple price offers are not uncommon. On the other hand, tired homes that have not been updated seem to sit on the market for a very long time. Things have changed and the tastes of consumers has changed with the times. I think most buyers these days are not interested in buying homes that need work and thus are discounting their offers to reflect the condition of the home. To get top dollar today it is very important to take the time and bring your home up to market. If you need some advice about your home just let me know. I will be glad to come out and consult with you about the market and your home. I you would like to do some research on your own, you can go to my IDX search engine and check out the activity for your neighborhood
Personally, I expect the coming year to be a good one for home sellers and for home buyers. How can that be for both sellers and buyers? Well for buyers, although home values in the area have gone up for the past few years the increases (unless you are looking in DC) have not been dramatic and housing values compared to five years ago still are fairly low. There are not so many "steals" out there as in the past few years but there is plenty of value and I expect any home sold this year to appreciate over time and prove to be a good investment overall. The bad news for buyers is that interest rates have gone up from last year. With the improving economy both locally and nationally it is impossible to sustain the super low interest rates that we have seen in the past. However, rates are not expected to go up sharply this year and should remain in the 4.5% range. This is an excellent rate and well below the historical average for the past 30 years Having worked this business since 1985 I think any rate below six percent is pretty darn good.
For home sellers it should be a good year as well. Homes in Montgomery county are steadily appreciating. Appreciation has been stronger in the western portion of the county but Silver Spring. especially those neighborhoods near the beltway and metro, is doing just fine. Our biggest problem today and this will benefit those who are considering selling is that the inventory of homes on the market is very low. The active homes on the market for this past December was the lowest that I have seen in quite a long time. This translate into demand as the weather and market heats up. I will say this and it was true at this time last year, any home that is in top condition and not overpriced is selling very fast. Multiple price offers are not uncommon. On the other hand, tired homes that have not been updated seem to sit on the market for a very long time. Things have changed and the tastes of consumers has changed with the times. I think most buyers these days are not interested in buying homes that need work and thus are discounting their offers to reflect the condition of the home. To get top dollar today it is very important to take the time and bring your home up to market. If you need some advice about your home just let me know. I will be glad to come out and consult with you about the market and your home. I you would like to do some research on your own, you can go to my IDX search engine and check out the activity for your neighborhood
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