It has been a roller coaster ride for the
last couple of years whether you are a buyer or seller. In 2013, you watched prices
for homes skyrocket up from the bottom. The first half of 2014 saw the market
stall, causing many to wonder what would happen next. Now that it is the busy
season for the housing market, what will the rest of the year be like? Many
experts have their predictions.
Steady but Sure
The theme for the second half of 2014 is
steady but sure. Housing prices will continue to climb but at a much slower
pace. This is good news for both buyers and sellers. Sellers who have been
hesitating to put their homes on the market will feel more confident, which
means that buyers will have more to choose from even as the market slows for
the fall and winter season.
This change also means fewer bidding wars
as people hunt for bargains. With fewer foreclosures on the market, most homes
will be priced close to what they are worth. However, inventory will continue
to increase as more sellers can finally afford to sell with rising home prices.
New Homes and New Buyers
New home construction is still sluggish in
much of the country. This is expected to change in the coming months but at a
steady pace. Overall, inventory will continue to go up, giving buyers more
options.
One of the issues has been the low number
of first-time buyers who are making purchases. They only comprise about a
quarter of those who are purchasing homes in 2014. Many reasons have been
given, but one of the primary causes is in rent vs. buy. Those who are moving
out from their parents' homes are looking to rent instead of buy. This can be
seen in the large demand and increasing inventory for apartment buildings.
From what experts are saying, the second
half of 2014 may be a great time to buy or sell with better inventory,
continued low rates, improved prices and less competition.
If you are ready to buy or sell your home,
let me help. I can make the process easier and have you moving on to the next
chapter of your life.
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