What the 2014 Mission Viejo Real Estate Market Has In Store for Us

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What the 2014 Mission Viejo Real Estate Market Has In Store for Us

What You Might Hear People Saying About the 2014 Mission Viejo Real Estate Market

We must put 2013 behind us, leaving just the memory of the frightfully low inventory of Mission Viejo homes for sale throughout the winter and spring; the skyrocketing home prices which stalled mid-summer; then a return to rising prices throughout the fall.  As we welcome in 2014, here are the top six phrases I predict you’ll hear this year when people talk about the 2014 Mission Viejo real estate market.

  • A more balanced market; a return to a normal market; a less one-sided market – or some variation on this theme.  This just means that it is a more level playing field than last year.  Sellers have to do more than raise their hand to get a good offer (let alone 10 offers), and they’ll be forced to be realistic about pricing make it to the top of a well-qualified buyer’s list.  Buyers will once again have a fighting chance at getting their first choice instead of standing in line only to get the big fat REJECTED stamp on their perfectly good offer.
  • Mortgage interest rates continue to rise – Snap out of it!  Rates can’t stay this low forever.  As the economy continues to improve, rates will naturally return to a higher level.  5.2% will be the new 3.5%.  And 5.2% is still historically low.  Grab it while you can. Or before it even gets that high!
  • Home prices continue to rise – OK – maybe not 17% in three months, but in the 2014 Mission Viejo real estate market, prices will keep inching upward this year.  We’ll see if sellers can keep their expectations in pace with the market and if buyers still love the record low rates enough to move with the rising tide.
  • Home affordability will push buyers out of their ideal home – as home prices and interest rates continue to rise, the budget buyers had will no longer get them the four bedroom single family detached house, they have to settle for three bedrooms instead to keep the same monthly payment.  And the budget you had allocated for a three bedroom house might now get you a three bedroom condo for the same payment.   Even if it’s only one of the two that increases significantly, affordability will definitely be impacted.
  • Loosening Lending Guidelines – as the economy grows stronger, there will be a slightly less strict road to toe for borrowers.  Maybe only two credit reports instead of four before your loan is approved.  Maybe only verification of employment, including wages and benefits, from the last three jobs you’ve had rather than your entire work history.  And something about how those front end and back end ratios work.  Oh dear, I dropped my slide rule.
  • New housing developments give buyer more options – Finally!  Buyers have the option of buying a new home directly from the builder!  In sprawling developments, like Rancho Mission Viejo and the Irvine Great Park, as well as smaller developments tucked into established neighborhoods, buyers can choose new over resale.  The first phase is usually the most desirable, since the prices usually climb with each phase release.  And have your financial ducks in a row to qualify to register for the interest list as soon as new neighborhoods go up for grabs.

Key phrases to listen for in the 2014 Mission Viejo Real Estate Market.  Happy New Year!

I’m Leslie Eskildsen.  Just keeping it real in Mission Viejo real estate.

949-678-3373

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Leslie@LeslieEskildsen.com

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