Home Sales 
 
 We expect sales to continue to outperform 2013 levels in markets with hot economies . Here in Silicon Valley , for example , we don ’ t anticipate any slowing whatsoever . In fact , we ’ re expecting a faster pace all around in this part of the world .
 However , this will probably not be the case in all pockets of the U . S . While we expect steady sales and healthy markets , we think that markets where prices may have climbed a bit too high last year and markets that still struggle with low inventory may not see the same incredible summer sale season that they saw in 2013 .
 


Values 
 
 While sales will be more intense in some markets and just as steady or slightly cooler in others , home values will increase all around , in our view . This is because demand continues to be really strong . And while home building picked up pace a bit more last year , it so far hasn ’ t been enough to offset low inventory in markets that really need it . This shortage will create more intense situations for buyers – more competition , more multiple bids . All of this points to increased home values .


Inventory 
 
 As already leaked in the predictions above , you can see that inventory again in 2014 will pose challenges in some markets . The good news is that rising home values have put homeowners in a better place overall this year and pulled a lot more owners out of negative equity . That means more freedom to sell .
 Unfortunately , we do still expect lower inventory than demand in certain areas – namely those that have had the worst inventory situations in the last few years . That ’ s because they ’ re still trying to catch up with years of pent-up demand .
 
 


Mortgage Rates 
 
 Mortgage rates are a funny thing . They sit at incredibly low levels , yet every time there ’ s a slight uptick the market goes crazy . Doomsayers start throwing their predictions out that the rise in rates will derail home sales .
 Mortgage rates do impact home sales to a certain degree . And while we expect some little increases here and there next year , the Fed hasn ’ t indicated any major moves in the near future that would impact rates – and therefore home sales - on a serious level .
 If anything , low rates and their small increases will fuel demand even more as buyers feel more of an urgency to get in the market .
 


The Economy 
 
 Trying to predict the economy is like trying to control an angry teenager . It ’ s a volatile situation that ’ s nearly impossible to predict at times .
 So far , the news we ’ re hearing is of steady growth . But like many things in housing , the economy ’ s impact on buyers and sellers really is more of a local thing . Where local economies strengthen , their housing markets follow .
 


August 2013 thru October 2013 November 2013 thru January 2014

Marta is the recipient of top honors at the Intero Real Estate Services Annual Achievement Awards : Top Producing Agent for 2013 Gilroy Intero Office — putting her in the top 5 % of all Intero Real Estate Services nationwide .

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