The second half of 2013 was really good for the housing market – home prices were on the rise, foreclosures fell, and buying got downright competitive in some cities. So what should we expect from the housing market in 2014? In short: more good news.
According to CBS News, reporting on new data released by the Urban Land Institute (ULI), there’s reason to be hopeful about real estate this year. The organization predicted 10 big trends we’ll see in housing in 2014, and most of them point to one, overriding theme – a nearly full-blown recovery from the damage caused by the bursting of the bubble in 2008.
For example, three predictions relate to a resurgence in interest in developing housing in multiple urban areas throughout the United States. Cities such as Minneapolis, Portland, and Austin are expected to be good places to invest in real estate in 2014.
Another subset of the ULI’s predictions suggest that single-family and town homes will be the hot ticket purchases this year; apartment and condo construction is likely to decline.
When it comes to conditions for potential buyers, the ULI believes that a major shift will occur in who hold the upper hand in the real estate market – sellers are expected to hold all the cards. Mortgage interest rates are likely going to rise and inventories will fall, which means that buyers will be scrambling. This puts sellers in a position to name their terms.
The only truly negative prediction relates to young buyers – Millennials are still not expected to break into the housing market in large numbers in 2014, probably because so many are caught up in paying off sky-high student loans. While this may not be cause for alarm just yet, many experts wonder what the future holds for a generation seemingly disinterested in homeownership.
Are you thinking of buying or selling a home in 2014?