Predictions for the 2014 Housing Market

by c21commonweath_ldowling 10. January 2014 18:12

2014 has arrived, and with a new year brings a new housing market forecast, new buyers testing the market, and new sellers looking to get the most out of their investment. Want to know what 2014 will have in store for you, as a Boston home buyer or a seller? Read on for our preview of how this year's housing market might play out.

2014 for the Buyer

Buyers in 2014 might find they have more money in the bank than last year, and more economic opportunities. The stock market has been improving for some time, and a number of observers think 2014 will see a recovery for the average person, too. The unemployment rate dropped almost one point over 2013, and hovers at around 7% for the beginning of 2014. Mark Zandi of Moody's Analytics thinks it could be as low as 6.25% by the end of this year, according to the Boston Globe.

A health economy should encourage new buyers to make investments. The recovery of real estate waits on the recovery of the economy as a whole, and it looks like this year might provide an additional boost to the housing market.

For buyers, another positive sign is that the inventory of houses available is increasing. In 2013, the number of homes for sales increased nationwide for the first time since 2011.

On the other hand, while buyers may find their economic prospects improving, sellers still have a lot of advantages.

2014 for the Seller

With the value of homes rising and the economy improving, Boston area sellers may be less inclined this year to get rid of their homes quickly, and instead look at renovating and improving their homes for more value down the line. In 2014 it should be easier than last year to borrow against your property and get such renovations done.

Before you begin construction, make sure you are appraised of inventory trends and not missing the perfect opportunity to sell your home. Have your realtor provide you with a report on listings versus closings in the area. If you see that listings have begun outpacing the closings, it might be time to put your home for sale, before the real estate market is saturated. Price your home realistically so you don’t find yourself burned by buyers who are unwilling to chase after overpriced homes.

 

Are you looking to buy or sell your home in the Boston area in 2014? Let us know what you think the year has in store for you. We wish a very Happy New Year to everyone!

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