What Will 2014 Bring for Real Estate?
CNBC Real Estate Reporter Diana Olick has made her real estate predictions for 2014. While none of us can know what will happen to the real estate market either nationally or locally, Diana’s 2013 predictions were almost right on target, so perhaps she’ll be right again.
Here’s what Diana predicts for real estate in 2014:
- Greater home sales activity. She believes more buyers will be coming into the market as more homes become available for purchase.The increased inventory is in large part made up of homes that were underwater, belonging to home sellers who decided to stick it out rather than opt for a short sale. With prices rising, more know how to sell a house from an equity position.
- Prices will continue to rise, but more gently. Diana predicted increased prices in 2013, but didn’t predict the sharp 12% rise. She feels those gains were driven largely by investors in the low end of the market.
- Rents will continue to rise. The present down payment requirements will continue to keep many first time buyers out of the market, putting more pressure on available rental properties. And of course, supply and demand generally dictates pricing.
- Investors will stay in the market. Some believe that rising home prices will cause large-scale private-equity investors to leave the single-family rental market. Diana believes the opposite – that they will settle in for the long haul, keeping the bulk of their properties. She believes they’ll still be buying, but perhaps in smaller numbers.
- Higher mortgage payments… Diana believes that interest rates, which are already more than a percentage point above last year’s rate, will continue to rise.
And what do we believe here at Homewood Mortgage?
We agree that rates will continue to climb. We also anticipate that most of our loans will be for home purchases rather than refinances.
We also believe that we’ll continue to make good loans for buyers all over Texas. As always, we promise low rates, low fees, and prompt service.
So if you’re thinking of becoming a Texas homeowner, call us at 1-800-223-7409 or apply on line at http://www.mikeclover.com/ We’ll be glad to get you pre-approved and ready to submit that winning offer. And if you do still have a high-interest loan and need to re-finance, we’ll be happy to assist.
There’s no application fee, and no obligation.