2014 Real Estate Market Projections
Looking back at 2013, it’s clear that the real estate market had a reasonably strong year. Markets across the country were showing growth and increased investor confidence. With this in mind, we can look forward into 2014 with some similarly positive projections:
- Inventory Should Eventually Stabilize: 2013 saw a spike in buyer demand and a shortage in inventory, closing with inventory rates at approximately the same level as the previous year. Homes are still selling faster than they were in 2012, but the market should gradually correct itself in 2014.
- Homeowners Should See Positive Equity: Home prices are on the rise, and show no signs of stopping. More and more underwater mortgages are finding themselves above water again.
- Rates Will Continue to Rise: The Federal Reserve is expected to continue its policies of buying up blocks of mortgage-backed securities in order to lower rates, but the Fed may decrease its bond-buying activity as the economy continues to improve. This could cause some increase in interest rates in the coming months.
- Foreclosures Will Continue to Diminish: September of last year was the 36th consecutive month of decreased year-over-year foreclosures. As equity continues to trend upward, foreclosure should have an increasingly small effect on housing market.
- Home Affordability Could Decline: 2013 represented a five-year low for home affordability. This rate may decline if the economy grows.