January 1st, 2014 6:29 AM by Michael and Jill Kohler
Today January 1st, 2014 we usher in a brand new year along with some new predictions for the 2014 housing market.
1) Higher mortgage rates when the fed curtails bond buying and slightly higher real estate prices in 2014 means that Affordability may get worse.
2) Market less frenzy. More inventory in 2014 will mean more listings for buyers to choose from. Fewer investors since prices higher. It may become slightly easier to get a purchase mortgage due to the anticipated decline in refi’s at higher rates. "Qualified" mortgages are good news for buyers, add’l inventory, easier mortgage, but affordability issues.
3) Repeat buyers will begin to drive the market. With prices now higher. That makes a great time for older homeowners to sell and cash out of their current home, and either upsize to the bigger one for their now expanded family, OR downsize to a smaller, more manageable home to retire in.
4) Single family rental homes will stay affordable until 30 year interest rates reach the mid 5's, which may still be a ways off yet.
5) Price growth will slow from the pace of the last couple of years. Get your FREE Quote Now!