Zillow is predicting a continuation of positive trends for the real estate market for the year of 2014. Their report, “4 housing predictions and 10 hottest local markets in 2014.”, reports that the economy is looking up and the real estate market is on the right track for positive growth. If you were thinking of buying a new Black Hills home or vacation home, now may be the time to start looking!
U.S. home values to increase by 3 percent. The quick rise in home values that we saw in 2013 were great gains in helping home values come out of the cellar. While home values will slow down this year due to the increasing mortgage rates, and increase in supply and new construction, we will still see a gain showing that the economy is bouncing back.
Mortgage rates to reach 5 percent by end of the year. Zillow believes that as the economy continues to improve, the Federal Reserve will decrease its easing efforts and mortgage rates will continually rise. Trends are showing that by end of the year, rates will exceed 5 percent for the first time since 2010. In most areas, affordability is still high in home buying so this won’t stint the housing recovery.
Mortgages will be easier to obtain in 2014. Although we will see a raise in mortgage rates, getting a loan are projected as being easier to obtain. Less demand of refinancing will cause lender to be more competitive for your business.
Homeownership rates will fall to their lowest point in nearly 20 years. Homeownership rates have been falling for quite awhile now and Zillow expects them to keep declining.
Indications seem to point to the first half of 2014 being the best time to invest in the market.
Rapid City, Hill City, Black Hills and surrounding areas…all great places for homes or vacation homes. If you are ready to buy a first home, vacation or investment property; or just have questions on if it’s the right choice for you – I’d love to talk with you.
Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!
Jim Peterson Integrity Realty 