Zillow's Four Big Predictions for Real Estate in 2014
Well now, we've all seen some major improvements in the overall health of the nationwide real estate market, and Zillow's predictions (for the most part) can be backed up here in Ohio if sales and price statistic trends on local Ohio MLS databases indicate what we can expect for the future. Based on projections for unemployment rates, population growth and the home values via the Zillow Home Value Forecast, Zillow predicts the following metros will have the hottest housing markets in 2014 (in order): Salt Lake City; Seattle; Austin, Texas; San Jose, Calif.; Miami; Raleigh, N.C.; Jacksonville, Fla.; San Diego; Portland, Ore.; and Boston. They obviously haven't noticed what's happening here in Ohio.
Hot for who? Zillow's E-commerce selling advertising to agents at a premium (even though their site is full of inaccurate and outdated information). Hot for buyers and sellers, or hot for agents? Your best bet is a competent licensed Realtor, a professional buyers agent or listing agent with experience and insight in the local market your buying or selling in.
- Zillow Chief Economist Stan Humphries says that the more modest home value growth he predicts for 2014 reflects a more mature, stable market that will exist a year from now. “(In 2014), 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,” Humphries said in a statement.
- As the housing market resets toward more sustainable, realistic lending standards and home value appreciation expectations, Humphries expects home ownership to drop to below 65 percent, a level it hasn’t seen since the mid-1990s.
- U.S. home values will increase by 3 percent; mortgage rates will crack 5 percent; borrowers will have easier access to a mortgage; and the homeownership rate will drop to its lowest level in 20 years.
- Even though Zillow predicts mortgage rates will rise to above 5 percent by the end of 2014, the competition for fewer borrowers will force lenders to ease their standards, said Erin Lantz, Zillow’s director of mortgages. Home affordability will remain high, too, in many markets despite the rate increase, she said.
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