With the 2013 year closely coming to an end, we are taking a look back at the 2013 Phoenix area real estate market and looking ahead to 2014. Overall the residential real estate market was good in 2013 with sharp price increases and a lot of activity in the first half of the year and then a leveling out of prices and slowing activity in the last 4th quarter. According to a recent article from Trulia, the past two years have been showing great news and results for home owners, especially those who have been struggling underwater. Not only have the home owners benefited but also the Real Estate Industry from both higher process and increasing sales volume. Listed Below is Trulia’s top 5 reasons why the housing market will be better than 2013:
- 1. Housing Affordability Will Worsen- prices will still rise faster than both incomes and rent. Also, mortgage rates will be higher in 2014 than in 2013, thanks both to the strengthening economy
- 2. The Home-Buying Process Gets Less Frenzied- There will be more inventory on the market next year, partly due to new construction but primarily because higher prices will encourage more homeowners to sell.
- 3. Repeat Buyers Take Center Stage- Repeat buyers are less discourages by rising prices than either investors or first time buyers because the home they already own has also risen in value.
- 4. How Much Prices Slow Matters Less Than Why and Where- Prices won’t raise much in 2014 as in 2013. If the prices being to drop for all the right reasons it would be great. If they slow due to another government shutdown or more debt brinkmanship than this is something to worry about.
- 5. Rental Action Swings Back Toward Urban Apartments- Throughout the recession and recovery, investors bought home and rented them out. Going into 2014 investors are buying fewer single family homes, which allows single family renters to become home owners again.
In a recent article by Phoenix Business Journal, the Phoenix housing market is on a rebound roll for 2014. A City that was once hammered from the housing market, the city of Phoenix has predictions for a booming 2014 real estate year.
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To read the full articles mentioned in today’s post check out: