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Health & Fitness

What to expect for the 2014 housing market

5% mortgage rates, moderating price gains and a

 pick-up in new construction on tap in '14

 

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2013 was an exciting year for housing as record low interest rates, tight inventory and rising home prices helped bolster the market's recovery. So what can prospective home buyers and sellers expect this year? Here are three trends to watch:

 

Find out what's happening in Darienwith free, real-time updates from Patch.

Higher Interest Rates - Expect to see mortgage interest rates rise as the Federal Reserve continues to taper its quantitative easing programs, which have kept average 30-year mortgage rates below 5 percent for 44 consecutive months. 2014 will be the year that rates go back above 5 percent, but by historical standards, that's still cheap money and good for housing.

 

Modest Price Appreciation - Last year, we saw year-over-year, price gains. Looking ahead, as interest rates and home supply increase, home price appreciation will slow to more sustainable levels.

 

More New Construction - For-sale new construction finally picked up steam in 2013 thanks to improved builder confidence. This trend should continue in 2014 amid pent-up demand and still-low mortgage rates, and will help drive the housing market throughout the year. Look for an increase in construction projects in 2014 with an emphasis on the luxury market.

 

I’m optimistic about where housing is headed overall, and I’m looking forward to another busy year.

If you're thinking about buying or selling, or want more information on the local market, feel free to contact me at any time.

 Linda Blackwell – Always working in your best interest.

Sr Vice President of Sales , Al Filippone Associates @ Wm Raveis

203 362-8316 or LindaBlackwell@optonline.net 

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