Health & Fitness
5 Housing Predictions For 2014
It seems like I’ve gotten a message each day over the last 2-3 weeks with another set of Housing Predictions for 2014. The Chief Economist for Trulia published his Top 5 Housing Predictions for 2014 and specifically how the market will differ from 2013. I wanted to share them with you.
1) Housing Affordability Worsens. We’ve discussed this before and this is almost a guarantee for 2014. The 3 key factors to Housing Affordability are interest rate, prices, and incomes. With prices and interest rates increasing, Housing Affordability will certainly worsen. The exception will be for individuals whose income increases more than the rates and prices.
2) The Home-Buying Process Gets Less Frenzied. This almost certainly has to be true because it’s hard to imagine the process getting more complicated!
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3) Repeat Buyers Take Center Stage. As home prices continue to increase, less home owners are underwater and will be able to sell their home and purchase another one. It could be either to get more home for a growing family or downsizing to simplify and/or reduce expenses.
4) How Much Prices Slow Matters Less Than Why and Where. Forsyth County could be a great example of this. We may very well see the increase in prices slow down, but it will be for good reason. More home owners can afford to sell now and there are over 1,000 new housing permits approved. These 2 factors will result in increased inventory and a shift to a more balanced market.
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5) Rental Action Swings Back Toward Urban Apartments. This one doesn’t seem to apply much to our local Forsyth County Real Estate Market, so I asked John Chihlas (Owner of Property Management Elite in Cumming) what his company was experiencing. “Young singles definitely migrate to Buckhead and enjoy renting in that area. However the couples and parents with children are still interested in staying in one of the top school districts here in Forsyth.” John also noted that there are currently luxury apartment homes being built on Highway 9 just south of Hwy 20.
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Let’s all make 2014 our best year yet!!!
Tim Hopkins
678-341-7403
