It’s nearly the end of the year. The time when we reflect on our successes of the past year and, of course, make predictions regarding the year to come. This even applies to the real estate market.
The Northwest Florida real estate market has experienced a terrific recovery and we hope to see this continue in the new year. Zillow has also released their predictions for the national housing market. Zillow has made four bold claims about how they think things will shake out as the economy, hopefully, continues to stabilize.
The first of the national real estate market predictions for 2014 is that home values will rise by an average of three percent. This is due in part to new construction, higher home prices and rising mortgage rates. Those rising mortgage rates are expected to keep going up, by the way. On average, it is expected that rates will increase by another 5%.
Believe it or not, rising interest rates may make it easier for some borrowers to qualify for financing and buy a home. Good news if you’re looking to sell! Homeownership numbers are expected to fall. This isn’t bad news, however, they are simply expected to return to levels considered “normal” and experienced before the economic bubble.