Home prices in 2014
December 18, 2013
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As millions of Americans have enjoyed the opportunity to get a low rate mortgage for the last few years, the end of 2013 has many wondering what the housing market will look like next year.
Year in review
Home prices have seen a rapid appreciation in many regions in the country, in part due to a low inventory and investor interest. When home prices bottomed out during the recession, many residential investors took the opportunity to snag properties at low prices and eventually helped the housing market stabilize. Now that prices are returning to normal levels, investors have begun to pull back their purchases as they are no longer able to find the same deals.
Home prices have seen a rapid appreciation in many regions in the country, in part due to a low inventory and investor interest. When home prices bottomed out during the recession, many residential investors took the opportunity to snag properties at low prices and eventually helped the housing market stabilize. Now that prices are returning to normal levels, investors have begun to pull back their purchases as they are no longer able to find the same deals.
For regular homebuyers, this may be beneficial. First-time home buyers in particular have a hard time competing with residential investors who may make all-cash offers. For sellers, all-cash offers are tough to refuse. Higher home prices may actually help first-time homebuyers close a deal.
Prices in certain cities spiked, causing some to wonder whether they were entering into bubble territory. California was one state that had many cities experience huge growth month to month. While sales remained strong throughout the year, the National Association of Realtor's Housing Affordability Index reached its lowest point in five years.
2014 predictions
Many real estate professionals have recognized that the housing market has made great strides in 2013 and expect the trend to continue heading into next year. However, the pace of growth and price appreciation will not be the same.
Many real estate professionals have recognized that the housing market has made great strides in 2013 and expect the trend to continue heading into next year. However, the pace of growth and price appreciation will not be the same.
The NAR also predicted that home sales would reach 5.12 million for 2014, though price growth will slow to about half its 2013 pace. For the housing market, slower and steadier growth may stabilize the market and prevent it from entering into dangerous and fragile conditions.
Contact the Federal Savings Bank, a veteran owned bank, to find a low rate mortgage.
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