Written by: UrbanTurfStaff
The end of the year inevitably brings predictions for the next, and that has already begun for the housing market. Trulia put out its set of predictions on Wednesday morning and here are a few:
•Buying a home will become more expensive in 2014. This prediction is not based on the idea that prices will continue to skyrocket, but on the thinking that rents and incomes will not rise as fast as housing prices. Rising interest rates will also be a factor.
•More inventory will lead to a “less frenzied” home buying atmosphere. The combination of new construction product and more homeowners deciding to sell because of rising prices will make for more choices i.e. an easier home buying market next year.
•2014 will be the year of the repeat buyer. As investors back away due to rising prices and the burden of saving for a down payment deters first-timers, repeat buyers will fill the gap. “They’re less discouraged by rising prices than either investors or first-time buyers because the home they already own has also risen in value,” Trulia economist Jed Kolko wrote. “Also, the down payment is less of a challenge for repeat buyers if they have equity in their current home.”
Trulia also released its list of ten housing market to watch in 2014, those with “recent job growth and longer-term economic success, as well as recent construction activity typical of vibrant markets.” The Bethesda-Rockville-Frederick area was the one local jurisdiction to make the list. We have reached out to Kolko for more insight into this interesting inclusion.