December 31, 2013 |
2013 was a good year for real estate all around and 2014 is expected to be another good year mostly.
1.Inventory will Increase
Short supply of housing was the main reason that drove prices up in Bergen County in 2013. Higher prices should encourage more home owners to put their houses for sale. New construction will be another factor adding to the expected higher inventory.
2. Mortgage Rates will Rise
Rates are ex expected to rise tot he 5% level , while higher than 4’s they are still within normal levels. The expected increase should translate to approx $160/month for every $200,000 financed.
3. Affordability Will Decrease
According tot the National Association of Realtors affordability dropped to a five year low . The combination of home prices increases, rising mortgage rates and stable income levels will continue the in 2014 resulting is lessened purchasing power.
4. Home Prices Will Rise
Depending on the region you live in home prices are expected to continue rising in 2014 . The national average is expected to increase 3%-5% with hot markets sowing even two digit increases. The rising prices will bring a lot of homeowners that were underwater to break even points . Other home owners that waited for the market to come back will put their homes on for sale.
5. Mortgages Will Be Easier to Get
Rising mortgage rates will result in lower volume of refinancing older and more expensive mortgages. This should result in lenders competing harder to get buyer’s business and potentially easing their lending standards.
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