In 2013, the housing recovery went into high gear, resulting in more than expected home sales. In addition, price gains hit an all-time high as well. Though 2014 has just started, and whether or not this year’s housing recovery is going to be as exciting as last, home sales are expected to stay where they are. Mortgage interest rates will rise a bit, but our Raleigh real estate agent says it won’t hurt the recovering housing market in such a way that home sales drop below what they were in 2013.
In essence, the housing market for 2014 has been predicted as “boring." According to most directors of economic research, boring is key in the housing market.
Raleigh Real Estate Agent | The Roark Premier Team
The housing recovery hit high gear in 2013 with bigger than expected price gains and solid home sales. This year isn't likely to be as exciting. Rising mortgage interest rates will price out some potential buyers. Instead of double-digit price gains, look for single-digit ones, economists say, while existing home sales remain at last year's level. Below, you’ll find a few facts from 2013, according to usatoday.com, that can be expected to hold throughout the remainder of 2014:
- Prices of homes are 20% off their 2006 peaks. That’s after falling more than 30%.
- Prices will likely rise more slowly as more homes come on the market, fewer investors bid for homes and higher ownership costs. This includes interest rates and home prices.
- U.S. housing remains 4% undervalued when compared with other economic fundamentals. At their 2006 peak, home prices were 39% overvalued based on the same metrics.
- Existing home sales have started to slow. In November, they were down year over year for the first time in 29 months.
- The dip in existing home sales was driven by higher interest rates and a tight supply of homes for sale.
- Existing home sales, which came in at a 4.9 million seasonally adjusted pace in November, are expected to be about 10% higher in 2013 than 2012 and stay about the same at 5.1 million in 2014, NAR forecasts. That's roughly back to 2007 levels but below the inflated levels preceding the housing crash.
- New-home sales have more room to grow in 2014.
- New home sales hit an annual pace of 464,000 in November. This was up almost 17% from 2012, but still below the 700,000-a-year pace generally considered healthy.
For a closer look at 2014 home sales and what is expected to come, be sure to visit back with us throughout our next several posts. We will take a look at December 2013 sales, as well as how sales are going this first month of the year.
In the meantime, if you’d like to talk with one of our Raleigh real estate agent about selling your home in Raleigh, feel free to contact us at The Roark Premier Team. Our real estate agency is ready to help you sell your current home.