As
you know we realtors are always trying our best to stay one step ahead of the
current real estate trends. The way I see it we’re probably about half of the
way through the housing recovery and I’ve noticed that most experts tend to
agree. So the question is “What can we expect to see in real estate in 2014?”
These are the top 5 predictions of many of the industry’s leading experts.
Expect a Larger
Inventory as the Year Progresses
Although
distressed inventory is still plentiful in most areas the prevailing thought is
that this will be the last year that low inventory will affect housing prices.
Sellers can expect to obtain better prices as time goes by in 2014.
As Always
Employment Plays a Major Role
As
many working class families can attest to unemployment continues to be a
deciding factor in our nation’s economy. Unfortunately employed persons are
also not experiencing higher wages as a result of slow economic conditions and
this is strongly affecting growth in the real estate market. It’s fair to say
that the local economies that are experiencing growth will experience a marked
improvement this year in the market as compared to less fortunate areas. The
good news however is that by 2015 the national economy is expected to improve
across the board. Good news for both sellers and buyers.
Big
Cities Will Experience Less Growth
Our
major urban centers such as New York or San Francisco are expected to take 2nd
place this year as consumers as well as developers and builders will tend to be
more interested in smaller metropolises; cities such as Denver or Portland. The
reason for the expected change is simply that buyers expect to find a better
deal (more house for the money) in such areas.
Condos
and Multi Family Units Will Decrease in Demand
As the economy slowly improves the recent exodus
from over mortgaged homeowners into the rental market is expected to reverse
itself. It is also important to note that 2013 may have seen too many multi
family structures being built for future needs. Condominiums are also expected
to lag behind single family homes and as a result it’s a fair bet that
investors will show less interest in building new units this year.
The
Market Will Favor Sellers this Year
Due
to a slow but seemingly steady recovery to the economy and the real estate
market the advantage to buyers is coming to an end. Sellers are getting better
and better prices for their properties and buyers are feeling the urgency to
make a move before interest rates rise once again. That isn’t to say that 2014
is a bad year to buy a home, it simply means that it’s a great time to sell! There
are always great deals if you (or your agent) know where to look.
No comments:
Post a Comment