With all of the changes we’ve seen in real estate over the past several years, you are probably wondering what to expect in 2014. As tends to be true in the real estate industry, it will certainly be an exciting year ahead! From home price trends to a new generation of home buyers, we’re here to report on the top 2014 real estate trends.
1. Millennials are buying homes.
The first major trend we saw in millennial participation in the real estate market came nearly a year ago when Inman News reported this generation’s rapidly growing interest in home buying. Millennials who earn over $50,000 per year will continue to show interest in making their first home purchases in 2014, despite not buying at the same rate that their parents’ generation did.
2. Real Estate recovery will continue … if job growth persists too.
The fact that real estate and employment go hand in hand is basic common sense, but that doesn’t mean we don’t always hope for the best! If wages and new jobs continue to stagnate in 2014, home sales will be fewer this year as well.
3. Home prices will continue to increase, but not as quickly.
The beginning of the housing recovery meant an uptick in home prices as inventory lessened. Prices will continue to increase in 2014 but will do so less aggressively since more supply is expected to be available this year. MSN.com details home price expectations in 2014.
4.”Recovery from the Recovery.”
According to the Urban Land Institute, a 2.5 percent gross domestic product increase in Q2 2013 could mean the end of real estate woes. While not an enormous increase, 2.5 percent is enough to create a housing demand.
5. Fewer Foreclosures
With an overall positive real estate market outlook for 2014, foreclosures will not be a large part of the mix this year. Foreclosure rates have been declining for years now, and we’re certainly happy to see them go!