The same factors that catalyzed widespread market recovery in 2012 and 2013 are likely to continue in 2014, though perhaps at a more moderate pace. That’s not a bad thing, since the market is returning to a stable, healthy state. January’s Real Estate Market Analysis provides potential trends to watch for in 2014, including increased seller activity, more new construction and fewer foreclosures on the market. Inventory is another metric to watch this year.
New Listings were down 11.3 percent for single family homes and 7.8 percent for Condo/TIC/Coop properties. Pending Sales decreased 12.0 percent for single family homes but increased 0.6 percent for Condo/TIC/Coop properties. The Median Sales Price was up 24.6 percent to $928,000 for single family homes and 24.6 percent to $950,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 20.0 percent for single family units and 31.6 percent for Condo/TIC/Coop units.
Given how far the market has come, it’s a good time for folks to reassess their situation. Many who were hesitant to sell in recent years may find themselves in a completely different position. Getting a fresh comparative market analysis might be a good idea. Interest rates remain attractive and should remain below their long-term average, but they are expected to creep higher in 2014. Politicians are gearing up for midterm elections, so pay close attention to campaign messaging as relates to real estate or mortgage financing. Job growth is still fundamental and is likely to dominate this election cycle.
