Dec 26, 2013
Now begins the countdown to 2014. Can you believe it’s less than a week away?
To help you prepare for the New Year, we’ve compiled a list of our top 5 predictions for what 2014 will bring to the Wake County real estate market. If you’re in the market for buying or selling a property, we definitely recommend you read today’s blog.
Wake County Homes for Sale in the New Year
First, let’s provide a little background for how we determined our predictions for 2014. We considered the fact that the US real estate market made a bigger comeback in 2013 than previously expected.
We also weighed the fact that home prices have been steadily on the rise, as has total number of home sales.
Given this and other factors, here are our five predictions for the New Year:
Inventory will stabilize to the point where it returns to traditional seasonal levels. There’s a natural ebb and flow of the real estate market. Over the last few years, however, that rhythm has been all out of whack because of the national housing market bubble burst, the recession, and unstable home buyer demands and home seller supply. In 2014, we expect things to even out to a more traditional level.
Fewer homeowners will struggle with negative equity. After all, home prices are expected to continue to rise, lifting millions of homeowners out of underwater mortgages. This is great news not only for these individual families but the housing market as a whole.
Foreclosure activity will slowdown. That’s because there are fewer and fewer foreclosures happening these days on the housing market. In fact, nationally, foreclosure inventory is at a multi-year low. This trend is only expected to continue.
Mortgage rates will continue to rise. During the years 2013, mortgage rates were said to have increased about 100 basis points. They will likely continue to rise in the new year.
Consequently, home affordability is expected to decline. Home prices have been at historic lows during the last couple of years. But as the market improves, home prices are expected to rise. In fact, the National Association of Realtors has a home affordability index, which compares prices with income. That figure dropped to a five-year low in 2013.
Your Dedicated Wake County, NC Real Estate Specialists
Of course, no one has a 100 percent accurate crystal ball but we do feel fairly confident about our predictions for the New Year.
Regardless of what’s in store for us here on the Wake County real estate market, it behooves home buyers and sellers to work with an experienced REALTOR® who can represent their best interests round-the-clock.
- Raleigh, NC
- Durham, NC
- Garner, NC
- Apex, NC
- Cary, NC
- Fuquay Varina, NC
- Morrisville, NC
- And others!
Until next time,