New Year Predictions

Posted: January 8th, 2014 by Brad

No doubt 2013, the “low inventory” year, proved robust for our rebounding real estate market. Record low interest rates motivated buyers, increased sales activity and drove values up by 12 percent throughout the region. As for what this year has in store for our market, here’s what we predict:

1. Inventory Should Gradually Stabilize and Return to Traditional Seasonal Levels
This remains to be seen, our sense is with more homeowners returning to positive equity positions, we’ll begin seeing more move-up/down buyers in the market this year. Such buyers having homes to sell will add inventory to the market.

2. More Homeowners Are Likely to Return to Positive Equity
While our market experienced increased value in 2013, we expect this trend to continue, possibly more moderately.

3. Mortgage Interest Rates Are Expected to Rise
Rates are in the low to high four percent range, depending on loan product and credit worthiness. It’s possible for rates to break the five percent mark before 2014 is out.

4. Foreclosure Activity Is Expected to Slow
Foreclosures are already down to their lowest levels since the third quarter of 2006, and continue to be on the decline. Distressed sales will become a more minor component of our overall market.

5. Further Declines in Home Affordability Are Expected
As our economy continues to grow, affordability will decrease.

National housing news and statistics can give a pulse on how the U.S. economy is performing. Home prices, inventory and foreclosure activity depend on local market conditions. If you’re curious about what’s going on in your neighborhood, give us a call. (866) 766.7325

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