New housing market trends may appear in 2014
Posted on Thursday, December 5, 2013 at 9:59:42 AM
Those interested in residential financing once the new year hits may be in for some good news. A number of interesting trends could appear in 2014, as conditions could start to change for the better.
Several trends are set to happen next year, according to Zillow. For example, home values may be on the rise, ticking up as much as 3 percent in 2014. However, mortgage rates could hit 5 percent by the time the year winds down, although acquiring residential financing may be easier.
"The silver lining to rising interest rates is that getting a loan will be easier," said Erin Lantz, Zillow's director of mortgages. "Rising rates means lenders' refinance business will dwindle, forcing them to compete for buyers by potentially loosening their lending standards."
Hot housing markets next year could be spread across the country, from Portland, Ore. to Austin, Texas and all the way to Boston, Zillow noted.
According to MoneyWatch, continued real estate recovery still relies on job growth. A stronger economy often means more sales, so those areas that are struggling could encounter more challenges as the year progresses. The market also appears to have shifted from the buyers to the sellers, with attractive home prices for those interested in a new purchase.