Experts at realtor.com and other sources predict that in 2014 we will see more of positive trends such as increasing home values. At the same time, mortgage rates are expected to rise which could hinder buyer affordability.
Judging by the data from 2013, predictions for 2014 include:
- More homeowners returning to positive equity rather than being "underwater" on their mortgages with prices expected to rise
- Inventory gradually stabilizing rather than the low inventory experienced in 2013 with homes selling faster (which is the same trend from 2012 to 2013)
- Foreclosure activity slowing and playing a minimal role in the market (foreclosure inventory dropped almost 33 percent from 2012 to 2013)
- Mortgage rates rising (having increased approximately 100 basis points in 2013)
- Further declines in Home affordability (the comparison of home prices to income dropped to a five-year low in 2013)
While these predictions seem spot on based on historical data, no one can be certain what the upcoming year brings. One thing is for sure - local markets vastly differ in their performance with home prices, foreclosures and inventory all being dependent upon local market conditions.
Author: Michelle Trimmell, RA, MBA