Forecasting 2014: “Nothing Much New Here”
2013 finally brought a gentle rise in interest rates, something we’ve all been warned about for years. As the Fed just began tapering debt purchases within the past couple of weeks, it seems we’ve already seen the largest jump in interest rates. Though we will see continued increases in interest rates, often forecasted between 4.75-5.5% throughout the year, and considering rates first dipped into the upper fives in 2003, historically speaking, mortgages are still cheap and likely will be for some time.
Surely it’s no surprise that home values are also up. With only two of ABOR’s MLS areas not reporting positive changes in the median sold price, the Austin Board of Realtors also reported a 9.6% increase in the median as well as a 7.6% increase in the average prices for the entire MLS area. Those numbers, for the entire MLS area, ranging from northern Williamson County south through Hays County and including Bastrop and Caldwell counties, are $219k for the median and $284k for the average.