Last year, the recovery in the real estate
market was simply a bright spot for the US economy. Home prices shot up,
lesser number of homeowners was underwater on their mortgages and the
confidence of the homebuilders was finally on the upswing. All the
aforementioned positive signs already heralded a better 2014. The experts
predicted that 2014 is also going to be a good year for the US real estate
market. If you’re a homebuyer looking for a new home n 2014 or a homeowner
looking for a refinance of your mortgage loan, here are some real estate market
trends that experts foresee for the year 2014.
market was simply a bright spot for the US economy. Home prices shot up,
lesser number of homeowners was underwater on their mortgages and the
confidence of the homebuilders was finally on the upswing. All the
aforementioned positive signs already heralded a better 2014. The experts
predicted that 2014 is also going to be a good year for the US real estate
market. If you’re a homebuyer looking for a new home n 2014 or a homeowner
looking for a refinance of your mortgage loan, here are some real estate market
trends that experts foresee for the year 2014.
- Larger number of
homes will be available: During the beginning
of 2013, short supply induced rapid increase in home prices but this is
something that is going to change in the year 2014. According to reports
by Realtor.com, the total homes available for homebuyers or the inventory
shortage has already begun to diminish in the month of February. Rising
home prices and positive results in the construction market is most likely
going to bring new homes, both old and new. This will in turn help
inventory return to new levels.
- Interest rates on
mortgages will rise: Zillow, an online real
estate database anticipates that the mortgage rates will rise to about 5%
by the end of this year. 2013 was the year of the homebuyers since the
mortgage rates stayed at their record low level for a couple of months.
The new Chief of the Fed, Janet Yelen has projected strategies to keep the
mortgages rates low by purchasing mortgage-backed securities. However, the
tapering efforts of the Fed might again push up the mortgage rates.
- Home loans will be
easily available: Like they say, ‘ever cloud
has a silver lining’, the silver lining to the soaring interest rates is
that homebuyers will find it easier to snag a deal with a mortgage
lenders. With the mortgage rates rising higher, the refinance business
will be shaken, forcing the lenders to compete for the buyers by loosening
the standards of mortgage lending. This will in turn make it easier for the
people to get mortgage loans.
- There will be a 3%
rise in home prices: Experts also predict that
there will be a rise between 3 and 5% in the home prices in the year 2014.
In the year 2013, we saw jumps of 5% with rates rising to more than 20% in
some hot areas. On the other hand, in 2014, the gains on home value will
gradually slow down de to higher mortgage rates, dearer homes and more
supply which will be created by fewer underwater mortgage owners.
Hence, if you’re someone who is looking forward
to owning a house in 2014, keep in mind the above mentioned real estate market
trends. Watch your steps and decisions so that you don’t end up taking a wrong
move with your mortgage. If needed, get help of a mortgage broker or an agent
who is trustworthy enough to help you make your choices.