The real estate market has experienced incredible change since the beginning of 2013, and now there’s one question on everyone’s mind: what will 2014 bring?
According to Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), in 2014 we can expect to see a six percent increase in pricing for existing homes and a five percent increase for newly built homes across the nation. And, while the number of existing home sales will likely remain flat, sales of newly built homes are expected to grow by 18.5 percent.
While this is fantastic news for both buyers and sellers, there are still some challenges to overcome. The National Association of Home Builders expects a strong recovery in the nation’s housing inventory but lowered its forecast regarding the number of new homes built due to the expected rise in interest rates. The Mortgage Banker Association estimated that mortgage interest rates will hit five percent by the end of 2014, which is still a bargain by historical standards.
As predictions continue to be made, it’s important to remember that all real estate is local. Baird & Warner is the largest local real estate services company in Chicagoland, family owned for 158 years. If you are interested in buying or selling in the upcoming weeks, months or even years, I can help you by analyzing the data in the specific areas you’re interested and provide you with the best options to achieve your goals.