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10 Real Estate predictions for 2014
I recently received this information from a loan officer in Plano. These 10 predictions are national in scope and do not necessarily mirror what I believe will transpire locally. However, I do believe we will have an exceptionally robust market in Texomaland in 2014 with the rapid excelleration of the retiring "Baby Boomers". Every 8 seconds someone turns 65!
Here they are;
1. Unemployment will stabilize between 6.9 percent to 7.2 percent as people re-enter the labor market and start looking for jobs.
2. Affordability will get worse, although price increases will slow from the unsustainable pace of 2013.
3. Expect mortgage rate increases next year. Don't expect major hikes to scare markets and buyers, but anticipate small upward rate increases as the Fed tapers further.
4. Move-up buyers will be less discouraged by rising prices and interest rates than investors or first-time buyers.
5. Gains in housing will hold up and even continue in 2014, but more moderately in all sectors: new homes, existing homes, and building starts. Growth, however, will be uneven across states.
6. Higher prices will encourage listings for homeowners whose homes were underwater; buyers will face less competition from investors who scale back from buying as prices rise.
7. Existing-home sales will climb 4 percent to 5.2 million, a 7.5 percent increase from 2012. New-home sales may climb by another 16 percent to 580,000 next year (2013 saw an amazing 36 percent increase over 2012).
8. Areas with inventory shortages should cool, but watch rising mortgage rates (see #3). Sales in California and Arizona will be rapid, while New York and Florida will continue to deal with gluts.
9. Prices could slow for the wrong reasons, too, if there's another government shutdown to dampen consumer confidence, which hurts both demand and pricing.
10. Looser credit may help renters become new owners. With fewer foreclosures, single-family rentals will tighten making buying more appealing.
If you are thinking of selling a property in 2014 remember it still must be priced properly. Tax assessment values, what you heard old Bob got for his property, and gut feel will only cause a property to languish on the market and eventually lowering the price you will ultimately receive. There is still no substitute for a Realtor you trust to get honest sales pricing information.
When I was new in this business, many years ago, I remember a loan officer telling me that a crusty old Realtor once told him, "If it doesn't sell it's always price". If you think about it isn't it always a matter of what one party is willing to pay another party. All the opinions and information in the world won't alter the fact that Real Estate is only worth what someone is willing to pay.
That's just the way I see it. Livin at the Lake and lovin it!
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