the United States for 2014
The well known real estate portal company known as
Zillow has recently come forward with a list of what they predict
will be the hottest housing markets for 2014 across the United
States. Boston, we are proud to say, made this list and was
recognized as being one of the future ten best real estate markets
for 2014.
According to Zillows Top 10 Markets For 2014, this
list compiled data regarding population growth, unemployment rates,
and its home value forecast judging past, current, and future
market performance to compile this list. Other notable cities that
made the cut were Seattle, Salt Lake City, and Austin. Overall,
home prices across the United States should rise by 3% next year,
with them of course performing far better in the top ten cities.
Homeownership rates throughout the entire country are expected to
fall, while mortgage rates may rise to 5% although consumers will
find it easier to obtain a mortgage next year.
Stan Humphries, the Chief Economist at Zillow, points
out that, “In 2013, home values rose rapidly-about 5 percent
nationwide and more than 20 percent in some local markets. These
gains, while beneficial in many ways, were also unsustainable and
well above historic norms for healthy, balanced markets. This home
value gains will slow down significantly because of higher mortgage
rates, more expensive home prices, and more supply created by fewer
underwater homeowners and more new construction. For buyers, this
is welcome news, especially for those in markets where bidding wars
were becoming the norm and bubble-like conditions were starting to
emerge.
So while the mortgage rates are predicted to rise, they still
will be below levels seen from previous years. The record low
levels they have been at recently were certainly not going to hold,
and the slight uptick will make mortgages easier to obtain going
forward; a wonderful realization indeed. Erin Lantz, Zillows
Director of Mortgages, explained this sentiment when she closed by
stating, “Rising rates means lenders’ refinance business will
dwindle, forcing them to compete for buyers by potentially
loosening their lending standards.
More Information: Banker & Tradesman