Have you been wondering how the real estate market will be changing in 2014? Here are a few of my predictions for the upcoming year.
Prices will continue to rise for most real estate, but not at the same pace as in 2013. Inventory will most likely increase, mortgage rates will go up, and these are just two factors that will slow the price increase of real estate.
Repeat buyers are going to start returning to the market. Investment buying will slow down as housing prices rise, first time home buyers will start to slow with higher prices and mortgage rates but repeat buyers will be ready to sell and move getting a higher price for their current home.
The panic over lack of inventory will also recede. More sellers will enter the market adding more inventory for buyers to choose from. With fewer investors as buyers it will also open up more properties for traditional buyers.
Home affordability will decrease, buying a home will be more expensive in 2014 than in 2013. Home prices will increase slowly and interest rates will start to increase.
Single family rentals will decline. Many investors bought up single family homes to use as rentals for people that lost their homes to foreclosure in the housing crisis. These renters will be getting back into the housing market themselves again, and investors will return to buying multifamily housing.
Overall the market will continue to improve, just at a slightly slower pace.