What Does the Real Estate Marketplace Look Like in 2014?

by Dan Jensen

Last year brought stabilizing and "reasonable" increases over the year to the prices of homes throughout the USA. Looking ahead through the coming year, indications are for prices to rise more slowly in 2014 than they did in 2013, with new home construction to continue to grow as the prime market mover throughout the year.

There will be two very strong factors influencing the prices of homes for the coming year...

1.) Rising mortgage interest rates

2.) More homes coming onto the market

These two factors will work strongly together to chill the fervor of some, with the first element causing many buyers who have only been able to enter the home buying marketplace due to the exceptionally low interest rates making monthly payments manageable to have to back off and wait a bit.

The second factor will soften that blow to prospective buyers by keeping the growth in home prices soft through the year which continues to translate to "affordable" for many buyers.

New construction plays a very strong role also. Mid $200,000 priced pre-owned homes are having to compete for buyer attention with similarly priced New Homes, and many of the pre-owned homes are losing that battle. This element will certainly continue to impact pre-owned home sales and pricing for the coming year or more.

All in all, we're looking at slower changes, smaller increases, and more stability for the foreseeable future. These are all good things in many ways, although there's a ton of homeowners out there still fighting their way back to "above zero" equity. These homeowners would very much like to see a more robust housing market come into the picture, but clearly, NOBODY wants to see these more stable gains go the other way!

 

Real Estate with Realtor Rod Sager: Curb Appeal is Buy Appeal

by Rod Sager

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Short Trends Review - What's Been Happening with Real Estate at the 2013 Finish Line?

by Dan Jensen

2013 real estate activity experienced a ray of warm sunshine throughout the first 3 quarters of 2013, with interest rates remaining low and home prices beginning to firm up just enough to make it possible for more homeowners to bring their houses to the market place. Although home prices grew as a rule, the rate of increase was spotty across the country, with areas not originally hit so hard seeing stronger "recovery" in prices, while badly slammed areas, with so much further to climb, not recovering with nearly the same speed.

In the final quarter of the year, both price increases and closed sales began to slow. The approach of new health care requirements, some not-so-hot economic numbers in key arenas, and the annual focus on holiday planning and activities all played a part. Nervousness revisited the market, with prospective buyers taking their time decided IF they were going to buy a home, and becoming picky about which home they would settle for.

Interest rates were beginning to inch up in the final quarter of the year as well which always has an impact on buyers' ability to qualify for the houses they really want to own.

It will be interesting to see how early 2014 begins to unfold in housing markets across the country. We started 2013 with strength, and we're hoping, for the sake of the overall US economy, that we will see the same strength show up early this year!

Have a great first weekend of 2014!

Your Equity NW Properties Team