There was a great article in the Washington Business Journal on the 2014 Housing Market that I thought I would share, quoting two notable Economists.
According to Lawrence Yun, Chief Economist for the National Association of Realtors, good things will continue to happen in the housing market in 2014. Due to suppressed activity during the past four years, rising demand, and a steady decline in inventory, Mr. Yun expects home prices to increase in 2014 as well as 2015, nationally. He predicts that the nation median existing home prices should increase by 6% in 2014.
“Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners,” Yun said. “Today is a perfect opportunity for moderate-income renters to become successful home owners, but stringent mortgage credit conditions are holding them back.”
Mark Vitner, Managing Director and Senior Economist at Wells Fargo, predicts that distressed homes (short-sales and foreclosures) will still be around, but will be declining. “Distressed homes right now are like an after-Christmas sale – most of the best stuff has been picked over, but make no mistake they’ll be with us for a while.”
Yun projects the market share of distressed sales will decline from about 25% in 2012 to 8% in 2014.
Marie Dinsmore, Certified Luxury Home Marketing Specialist
The Dinsmore Real Estate Team | www.dinsmoreteam.com
Marie@DinsmoreTeam.com | 770-712-7789