Predictions and estimates of real estate trends in 2014.
More Homes Will be Available
If you had trouble in 2013 with the diminished real estate market, this 2014 trend will be a breath of fresh air for both buyers and sellers. More homes will be on the market this year, returning the housing inventory to a more regular level. However, in many areas, homes quickly get sold and they don’t stay on the market for a long time.
Mortgage Rates Will Rise
Predictions are that mortgage rates will be up to 5% by the end of the year; while this means homes will be a little more expensive to finance monthly, 5% is still very low. The silver lining? Increased mortgage rates means mortgages should be easier to get. Lenders’ refinancing business will decrease, forcing them to compete for buyers by loosening their lending requirements.
Home Prices Will Rise
Online sites like Zillow and Redfin are predicting that home prices will rise between 3% and 5% in 2014. While this is a plus for sellers, it’s not the greatest news for buyers. Sellers know that because of the smaller market and quickly rising prices, buyers are more eager to find a home sooner rather than later.
Ownership Will Decline
In 2014, homeownership rates will fall below 65%. With home affordability declining and mortgage rates increasing, along with income levels that just aren’t keeping up, it is predicted that the number of homeowners will drop.
People Will Move
With prices on the rise, some will put their properties on the market and consider downsizing.
Apartment and Condo Developments Will Drop
Following an increased demand from homeowners-turned-renters in 2013, there may have been too much multi-family construction that year. Now that an emerging desire for homes has returned to the market, the demand for apartments is expected to quiet down in 2014. Along the same lines, condo development will be put on hold since market conditions for condos haven’t been favorable in recent years.
Foreclosures Will Decrease
2014 will continue to see waning foreclosures, a trend the market has seen since 2012. This trend should continue with the overall housing recovery.