Now's the time of year when we begin to look forward to what's to come. So, what should you expect for next year's housing market? Here's how the 2014 housing market will be different from 2013. Lets take a look.
The housing market continued its uneven recovery in 2013 and will enter 2014 closer to normal than it was a year earlier. Consumer optimism is climbing back: in Trulia’s latest survey, 74% of Americans said that homeownership was part of achieving their personal American Dream – the highest level since January 2010. Even among young adults (18-34 year olds), many of whom struggled through the recession and are still living with their parents, 73% said homeownership was part of achieving their personal American Dream, up from 65% in August 2011. Rising prices over the past two years have been great news for homeowners, especially for those who had been underwater, and the real estate industry has benefited from both higher prices and more sales volume.
At the same time, the effects of the recession and housing bust still sting: the barriers to homeownership remain high, and a few markets – mostly in Florida – still have a foreclosure overhang. Plus, the housing recovery itself brings its own challenges, including declining affordability and localized bubble worries, especially in southern California.
Barring any economic crises, the housing market should continue to normalize throughout 2014, but change is on the horizon. Here are the five ways that the 2014 housing market will be different from 2013:
- Housing Affordability Will Worsen
- The Home-Buying Process Will Become Less Frenzied
- Repeat Buyers Will Take Center Stage
- How Much Prices Slow Will Matter Less Than Why and Where
- Rental Action Will Swing Back Toward Urban Apartments
Want to know the rest? Click here to download all of the 2014 housing predictions.
Plus, I recently gave a webinar explaining what these housing predictions may mean for your 2014 business. You can watch a replay of the webinar here.
I'd love to hear what you think and hear about any predictions you have for 2014.
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