Real Estate Market Status and Trends for 2014

posted on February 5th, 2014 | filed under: Uncategorized

bigstock-Real-estate-market-14431283Here we are at the beginning of another new year, which is the perfect time to take stock of where we’ve been and where we’re going.  Real estate market reports for 2013 are starting to come in and experts are using this information to predict where we may be headed in 2014.  All this information can be extremely helpful to those who may want to buy or sell a home in the coming year.  Here’s a look at what’s been going on at a national level.

The Market is Recovering – But Not Recovered

Economists believe there are four key indicators that point to a fully recovered housing market.  They include:

  • Low unemployment rates and a healthy job market
  • Mortgage delinquencies that are in line with historical averages
  • Home sales that are in line with historical averages
  • Home payments that correlate to an affordable mortgage payment-to -income ratio

Numbers for 2013 are in and they reveal that our national real estate market is in recovery, but still has some catching up to do.  Unemployment rates across the country are in decline, but still remain relatively high at 6.7 percent.  The number of those behind on their mortgage payments is also continuing to fall.  The percentage is at half its peak rate at 5.88 percent, but is more than twice the historical average of approximately two percent.

Home sales are also on the rise, which is good news.  However, they still remain lower than those from ten years ago.  Average rates of homes being sold from current housing stock is about six percent.  Current levels are hovering at just around four percent.  In addition, home prices are increasing but still have to make some gains to keep pace with income growth.

Home Remodeling Expected to Grow in 2014

While the housing market is indeed in a state of recovery, some homeowners are opting to make changes to their current homes instead of buying or selling.  2013 saw big gains in the amount of money spent on home remodeling, and that trend is expected to continue into 2014.  In fact, experts predict double-digit gains through the first half of the year, with numbers tapering off to around ten percent in the third quarter.

These predictions are based on the fact that many homeowners are feeling more optimistic about the housing market and are ready and willing to spend some money to upgrade their homes.  However, experts are also predicting that borrowing costs will start to slowly increase sometime around mid-year, which will slow the rate of home remodels.

What Does This Mean for You?

In a nutshell, the data that has been collected shows that we can be cautiously optimistic about the real estate market for 2014.  2013 saw gains across the board, and those gains are expected to continue into the New Year.  If you’re considering buying or selling or home or even remodeling, 2014 looks like a good year to take the plunge

posted by Jeff DeChamplain

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Jeff DeChamplain