2014 outlook

In the Philadelphia region, 2013 was a positive year in real estate. 
Inventories were low in many areas which resulted in multiple offers and higher sale prices. Personally, I experienced that scenario in multiple towns throughout the 5 counties!
So, what's coming up for 2014 you might wonder....

-For 2014, according to the National Association of Realtors, "The housing recovery is expected to continue on its path in the new year with home prices continuing to rise; sales to rise slightly; and the foreclosure crisis expected to finally draw to an end.

“For the general consumer, the market will be good in 2014,” said Lawrence Yun, the National Association of Realtors®’ chief economist. “Home values will continue to rise, but not sharply, but there won’t be a decline.”

This year has marked the second straight one of a “very respectable recovery,” said Yun, with a 20% cumulative increase in existing-home sales over the past two years and nearly a 20% rise in home prices. However, he notes that existing-home sales will likely plateau in 2014.

Home prices, which rose 11% in 2013, will grow at a slower pace of five percent in 2014, Yun estimates. He attributes the expected slowdown in the home-price rise to “less affordable conditions from higher prices and higher mortgage rates.”

-The Real Estate Economy Watch website just posted an article referencing 4 things that WON'T happen in 2014- you never know for sure, but I think it's realistic. Here is a snippet:

1. Inventory shortages like the one last year are history. Not a chance of a repeat in 2014. Rising values pushed another 30% of homeowners above the surface last year. Markets across the nation have returned to better balance between supply and demand.

2. If interest rates dip below 3.5%, its time to move to China. Rates on a 30 year fixed rate mortgage bottomed out a year ago below 3.5% and they remained low through the first of this year despite widespread predictions...  With the economy starting to return to life and the Fed talking about tapering, not if but when, it’s pretty obvious that rates aren’t going back and the 3 percent days are a thing of the past, unless we hit a depression.

3. Discounted deals on distressed sales are a thing of the past in the sand states, except for Florida.  No more toxic loans, no more toxic foreclosures. In 2014, however, it will still be possible to do some flipping in places like Jersey City, Albany, Columbus O, and Baltimore where judicial state laws extend the foreclosure pain on homeowners and lenders alike.

4. Investor purchases won’t continue to bolster demand. Accounting for 30% market share or more two years ago, investors’ share is half that and shrinking. The future of the recovery going forward is more dependent of owner-occupants than ever." 

Read entire article here http://www.realestateeconomywatch.com/2013/12/four-big-things-in-real-estate-that-wont-happen-in-2014/

-Become familiar with the term: Boomerang Buyers

These are the people who were ousted from the market due to foreclosure or short sales, have spent years renting to rebuild their credit, saved enough to buy and are now back in the market looking. 

These buyers are expected to help the market turnaround. 

If you have questions about the buying process, how to qualify for a mortgage or want information on your specific neighborhood, please contact me directly:

Kelly Kneeland Steyn

kskneeland@gmail.com

484-343-2406

www.KellyKneeland.com