2013 saw housing recovery getting stronger and stronger. So, what’s in store for the year ahead? According to the Wall Street Journal, the housing market will finally start picking up the rest of the economy in 2014. Here are a few other predictions economists are making for the next year:
- The mix buyers in 2014 will shift to a combo of families moving up or buying their first homes, rather than cash-only investors who have been driving sales in many cities.
- Mortgage rates, which declined to historically low levels earlier this year, should continue to tick up.
- Mortgages may slowly become easier to get, but they will also be more expensive.
- Mortgage rates are set to end 2013 more than a full percentage point above last year’s levels. Many economists predict they will rise further in 2014 as the Fed continues to slow the bond-buying program that had pushed rates to record lows.
- Home supply and demand are finally in a balance that should encourage building.
- Builders are becoming more confident breaking ground. Building should improve along with steady gains in the job market, adding to already-high demand for new homes and apartments.
- Home prices ignited in 2013, rising between 5% and 13% over the past year. Economists predict such heavy gains won’t happen again this year.