The 2014 Housing Market
Posted by semoninblog
It is always hard to predict the future in real estate, as you can never be absolutely sure what the housing market will do. However, based on past activity and current trends there are a few things believed to happen during 2014:
Interest Rates Will Rise
Throughout the year of 2013 we saw interest rates rise steadily. During the first quarter of the year, rates hovered around 3%, but as we closed out 2013 rates were just under 5%. It is believed that this trend will only continue on its upward slope throughout 2014, and interest rates on mortgage loans will begin to approach the mid-5% to 6% range.
Home Sales Will Increase
The numbers have shown the strength of the housing market is only getting better. More people are becoming increasingly optimistic about buying a home. Furthermore, Generation Y—the largest generation since the Baby Boomers—is moving into the “ready stage” when it comes to making an investment in real estate. With interest rates rising at a steady rate, many people are looking to buy sooner rather than later.
Demand Will Exceed Supply
The surge of homes sales will likely cause a shortage of inventory, similar, if not worse, to what we saw in 2013. To satisfy the demands of all the home buyers, it is probable that 2014 will bring excellent opportunity for builders and real estate professionals.