2013 wasn’t much of a good year when it comes to real estate. It wasn’t that bad either. In fact, it was better than it used to be, but still in recovery. 2014 brings in more hope for the real estate market as far as the experts are concerned. Here are some of the trends they expect for 2014:
Less Underwater; More Positive Equity
One of the predictions for 2014 is that home prices will rise by 3%. If this is the case, then many property owners who are underwater at the moment will see their homes increase in value, making some of them worth more than what they owe again.
PricesvsWages
Less Affordable Homes
The downside of this rise in property prices is that homes won’t be as affordable as they were in previous years. Of course the increase
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Higher mortgage rates means stiffer competition between lenders and one way for them to get ahead of the pack is to loosen their hand when approving loans.
More Stock in the Inventory
The property inventory won’t be at traditional levels just yet, but sometime in 2013, the shortage of homes for sale already began to wane. This is expected to continue in 2014 thanks to rising home prices and new construction projects in the works.
Less Foreclosures
This is the best news yet for homeowners everywhere. Of course, those who wanted to cash in on one of the biggest foreclosure markets in recent history, but didn’t are a little bit too late for the party. The rate of foreclosure has been slowing down since mid 2013 and is expected to continue until the real estate market fully recovers in the next couple of years.
Moving it Elsewhere
People will move. All these factors combined makes it the perfect time for people to move to cities where job opportunities are. Expect buyers to go for smaller, more affordable homes in areas where property values are still relatively low. These second-tier cities will eventually be the “it” place, but until the areas are fully developed and they take their place as first-tier cities, expect home prices to be affordable there and that’s where people will