While no one can predict with any certainty what the housing market holds in store for 2014, a constant in real estate is always that many local markets vary widely in their performance. National numbers tell one story about the real estate market in general but home prices, inventory levels and foreclosure/short sale levels can be quite different locally. This is certainly the case here on 30A.
The U.S. real estate market made a robust comeback in 2013, surpassing the expectations of many economists as the combination of low inventories and historically low interest rates caused home prices to rise significantly. Here on 30A, we saw bidding wars for many properties as they hit the market. The few short sales and bank foreclosures that are down now to a trickle are selling for above the asking price. Mortgage rates are expected to rise to levels around 5% during 2014 and this will have a leveling effect on demand but we do not see this being the case here on 30A.
Here are our real estate predictions for 2014: 30a vs national …
1. Inventories along 30A will begin to rise which will slow the rate of price increases to a healthier level. 15 to 20 percent a year is not healthy because it is simply not sustainable.
2. Prices will continue to rise. Here on 30A, there is a lot of pent up demand for second home purchases along the beach. Most of our buyers are experienced and savvy with higher levels of disposable income than younger, first time buyers.
3. Mortgage rates will continue to creep up. We see them approaching 5% during 2014 but these rates are still historically low.
4. Foreclosure/short sale activity will continue to slow. The percentage of distressed sales here will remain far below national levels with most of these listings going under contract almost immediately.
Overall, there are no dark clouds on the horizon as we begin 2014 and most economists are optimistic about the overall market. Here on 30A things have gotten off to a good start.
If you would like to speak with a 30a Specialist then call Homes on 30a today 850.687.1064