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.