This morning I came across this great article on Housingwire.com regarding the current market of 2013 and a small glimpse of the market to come in 2014. During the mid-year, predictions of a strong Seller's market was predicated in 2014 with interest rates up in the 5% range. As the fall and winter season approached, a real estate shift from seller's to balance market.
Home buyers are more cautious in the buying process as home prices rise especially with buyer's who reluctance to buy a home that deemed too expensive. Builders are trying to make up for the lack of inventory with new homes claims Lawrence Yun, chief economist for the National Association of Realtors.
This is a good and bad news. Good news for owners and home sellers who are getting appreciation and increase in housing equity which helps the economy in terms of consumer spending. Bad news for potential homebuyers getting discourage from buying due to rising home prices and strict lending.
I agree with Brena Swanson, author of the article, when she writes, "If prices increase, homebuyers may choose to step out of the market if sellers do not adjust their list prices."
It looks like Sellers will be in a good shape in 2014 as prices will edge upward with little room to move further. Only time will tell....
Home buyers are more cautious in the buying process as home prices rise especially with buyer's who reluctance to buy a home that deemed too expensive. Builders are trying to make up for the lack of inventory with new homes claims Lawrence Yun, chief economist for the National Association of Realtors.
This is a good and bad news. Good news for owners and home sellers who are getting appreciation and increase in housing equity which helps the economy in terms of consumer spending. Bad news for potential homebuyers getting discourage from buying due to rising home prices and strict lending.
I agree with Brena Swanson, author of the article, when she writes, "If prices increase, homebuyers may choose to step out of the market if sellers do not adjust their list prices."
It looks like Sellers will be in a good shape in 2014 as prices will edge upward with little room to move further. Only time will tell....
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