So far this year, the housing market has been hampered by negative factors such as weather, higher mortgage rates and prices, shortage of properties for sale and tight lending practices. Even so, the housing market continues to grow. The outlook for 2014 is good — not only for residential but for the real estate industry as a whole.
Regarding residential properties, experts predict smaller price increases this year. Their best guess is that prices will be up but not as much as last year. Some surveys show consumers expect to pay 3 percent more each year for the next ten years. In other words, home prices will likely increase less than mortgage rates, indicating that the consumption motive to purchase a house is stronger than the investment one. Also, the futures markets have home price increases at 5 percent annually. Experts see a continued buyer preference for rentals because household formation has been slowed by unemployment.
Read more...2014 Real Estate Outlook | the Blog of the Real Estate Center
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