It’s no joke!

by

blog-author-clayjeffreys3

This year continues to bring surprises our way. The good news is these surprises are for real, and not a cleverly planned April Fools joke.

 

Sadly this video is a joke.

Home Values Continue to Rise

With home sales declining from January 2014 to February 14 (their lowest level in close to two years), one might think “here we go again” with the housing slump coming back. That’s not the case this time! Instead of a recession or foreclosures causing home sales to decline, it was the harsh winter across the country that kept people from going to look at homes and/or putting homes on the market.

The good news is that home values are continuing to climb with a rise of roughly 9% across the country compared to prices a year ago. Metro Atlanta saw a year-over-year increase of 15%. Also, the number of short sales and foreclosures continue to decrease.

While the number of home sales dropped early this year, the trend is actually positive for the housing market. With the harsh winter behind us, expect home sales to rise in the coming months.

Interest Rates Hold Steady

Most of the experts (and this blog) felt interest rates would rise in 2014 as the Federal Reserve began and continued their tapering plan. Not only have rates held steady, they have slightly improved thus far in 2014. Why?

As recently posted to this blog, world events impact interest rates. When the Feds announced the tapering plan, China and other emerging market countries were not releasing reports with negative economic outlook projections. On top of that, Russia was getting ready for the Winter Olympics and everyone was playing nice in the Ukraine.

Fast forward a few months… the uncertainty in Eastern Europe coupled with a slow down in economic output from emerging markets has made the US Dollar a “safe haven” investment again. Foreign investors are looking to buy more bonds than the Federal Reserve have made available from their tapering plan. The demand has caused bond values to rise so far in 2014, which has made interest rates improve a little so far this year.

Just because today is April 1st, it doesn’t mean this news isn’t true. We have seen home values continue to rise even though homes sales have dropped a little in 2014. It is definitely a seller’s market right now. We’ve also witnessed interest rates slightly improve despite the warnings of the tapering impact on rates.

It’s no joke – housing prices are rising and rates are holding steady. If you are looking to buy a new home this year, get started today! If you are buying in Georgia, contact me. I can prequalify you and get your housing adventure into full spring (get it!).

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