It’s been a banner year for the U.S. real estate market.
There’s no doubt the market’s rebounded from its slump; everything from residential to commercial numbers are on the rise. Maybe you started your first home search in 2013 or perhaps you’ve just started thinking about putting your current home on the market. Whatever the case, here are a few things on the horizon for 2014 to keep in mind…
New Mortgage Fees are on Hold
The Federal Housing Finance Agency had planned an array of new fees for Fannie Mae and Freedie Mac backed mortgages to begin on 4/1/2014. A week ago, however, the new FHFA chief says he plans to postpone and perhaps even cancel the fees once more analysis is done, potentially saving mortgage borrowers thousands of dollars on each new mortgage.
Home Prices Will Continue to Rise
If you’re thinking of putting your home on the market, 2014 may be your year. Both Zillow and Redfin estimate national home prices will rise between 3-5%, and up to 20% in some areas. The Charlotte market, in particular, has risen about 6% overall since this time last year according to database Trulia.
Commercial Real Estate Will Rebound
The commercial market has lagged behind the residential market for a couple of years but 2014 will be year of rebound. With millennial tenants demanding more urban leased commercial properties both rental and owned commercial spaces are on the move. In general, the uptick in housing sales has spurred on the commercial market in manufacturing and construction.
Fewer People Will Buy
Another reason now’s the time to sell: experts are predicting that residential leasing will be up and purchasing down by the end of 2014. As the inventory on the market stabilizes and mortgage rates top 5% (it’s when, not if…) potential buyers will put off home buying for longer than in the past couple of years.
Another Wave of Migration
More and more, people are moving away from historically expensive parts of the country to more affordable areas, particularly as the national job market picks back up. Mid- to large-sized cities such as Charlotte, Portland, Denver, and Austin will continue to become hot spots for growth as young families and Baby Boomers seek out less expensive homes with higher quality of life.
Change in Home Buyer Desires
Experts predict more and more changes in what homeowners are looking for. Large suburban McMansions have been on a slight decline for years as buyers search for smaller, more centrally-located homes. Additionally, a rise in two-master bedroom homes has also been noted nationwide as families increasingly dwell as a multi-generational unit.
As for Charlotte specifically, 2014 is looking good. Employment is up (the Mecklenburg county region had a 3.3% gain in employment this year, the highest in the state), home sales and home prices are up, and big businesses like Electrolux and MetLife are increasingly calling Charlotte home. Things are continuing to look up for Crown Town!
Questions about what 2014’s real estate market means for you?
Call Leigh Bryant at On the Move Charlotte to talk about your options and strategy for the coming year.
And Happy New Year from the On the Move Team!