Trends Forecast for the US Residential Real Estate Market in 2014
Latest reports by Zillow state by the end of 2013, national homes values remained high by about 6.4%. By the end of the fourth quarter, the price was valued at $169,100 according to the US Zillow Home Value Index which is about 1.4% higher than the third quarter and about 0.6% higher than November. Annual home value appreciation has fallen after reaching its peak of 7.1% in August. By the fourth quarter, it was consistently down by about 7%.
Throughout last year, certain real estate properties such as the metro markets had started recovering early and home values has shown considerable healthy appreciation in values but, by the fourth quarter they had cooled off as well.
Many areas experienced a flat rate or a slowdown in the annual appreciation rates. Home buyers got to go through affordability issues too as mortgage rates were increasing. With the start of 2014, the national appreciation rates in the real estate market are expected to slow down quite a lot. The Zillow home value forecasts predict the rise in the home values by the end of the year to go up to 4.8% only. Home buyers and sellers should not be following on these forecasts religiously as although national conditions are being predicted for, local conditions can vary and be a cause of confusion among the people.
The troubling trends surfacing up for 2014 will be caused by quick appreciation done on shaky grounds. The recovery of the housing market over the year has been maturing in the year of 2013 but for 2014, things are quite a mixed bag. When people face affordability issues, the demand for residential real estate or homes would go down and appreciation values for the prices of homes would naturally follow suit.
The number of homes being sold and the sellers in the market are expected to rise. This could ultimately create a friendlier and welcoming market for the buyers reducing the competition between investors. The rent rate has been rising too. The Zillow Rent Index calculates national rents increased by 0.7% and now are about $1,302. About 10,000 homes went into foreclosure by the fourth quarter too. While efforts are being put into creating a moderate appreciation and a normal real estate market, figures and forecasts by experts in the field could display troubling trends for the US residential real estate market in 2014.
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