What real estate experts expect to see
in 2014.
We are already two weeks into 2014. So, now’s a prime time to take a look at
what’s in store for us this year in the world of real estate.
Signs point to another
good year for the housing market, although the
recovery most likely won’t clock the same breakneck speed as last year.
Here are 5 predictions, made by experts in the field, to help prepare you for
any home-selling or buying activities this year:
1) Home prices will continue to rise: The chief economist for the
National Association of Realtors,
Lawrence
Yun, foresees home prices rising by 6 percent. This is about half of the
increase in home values seen in 2013, indicative of 2014’s reduced pace.
2) So will mortgage rates: I’m sorry home-buyers, but the
low interest rates of 2013 are not going to stick around. We go again to Lawrence Yun, who
predicts that the average rate for a 30-year fixed mortgage will climb to 5.5
percent before the year is over.
3) Fewer foreclosures on the horizon: Thankfully, the worst of the
foreclosure catastrophe that devastated so many Americans appears to be history.
According
to Daren Blomquist, who monitors the foreclosure market at RealtyTrac,
"We're in the home stretch of getting through the foreclosure crisis, but we
won't cross the finish line, with filings back to pre-crisis level, until early
2015."
4) Borrowers can expect more ease in securing a mortgage: Although
interest rates are expected to rise, Erin Lantz, director of mortgages with
Zillow, points to a “silver lining.” Lantz says that “rising rates means
lenders' refinance business will dwindle, forcing them to compete for buyers by
potentially loosening their lending standards." That’s encouraging.
5)
Rental market to stay strong: Because of items 1 and 2 above, along with
other factors such as a decline in home-ownership and a surge in Americans on
the move,
forecasters
at Zillow envision a robust rental market in 2014.
