Forecasts predict a mixture of good, bad and normalcy in 2014
It’s a new year and we expect to see a mixture of positive, adverse and normal real estate conditions. According to Realtor.com’s 2014 predictions, homeowners, sellers and buyers can expect to experience different benefits based upon their real estate needs. Though it is forecasted that the real estate market will have good and bad points throughout the year, some areas of the market are expected to level out to normal levels.
In the second half of 2013 more than 2 million homeowners rose from being underwater in relation to the value of their home and the amount owed on a mortgage. More than 7 million still remain underwater, while 10 million homeowners have less than 20 percent equity. In 2014 we expect to see a rise in the amount of positive equity and more homeowners rising up from being underwater.
By the end of the third quarter in 2013, we saw foreclosure rates drop to the lowest they have been since 2006. The rate of foreclosures is expected to continue to decline in 2014.
It is believed that because the Federal Reserve started tapering its stimulus spending, we saw a rise in mortgage rates in 2013. In 2014 we expect to see those rates continue to rise. Rising home prices may help some homeowners recoup lost equity. However, that increase in equity will decrease the overall affordability of homeownership.
It is predicted that in 2014 home inventory levels will rise. This will help bring the number of homes available to buyers back to more normal levels.
For more information about the current real estate market and assistance serving your needs in the Danville area contact the Zwahlen Team! Contact us today!