The chill in the air is accompanied by a flurry of activity in predictions for the real estate market in 2014.  Real estate associations, along with national economists have already put figures to their forecasts for the upcoming year.  And the public wants to know.  Those looking to purchase in 2014 are eager to know where they stand in terms of financing, as well as in which direction to focus their house hunting.  And those contemplating selling their homes anxiously await the prediction of a rise, or decline in housing prices.  The most ideal way to determine what is best for you in the upcoming year is to contact your local real estate agent.  They should be the most familiar with the projection for your area.

So far, chief economists are expecting a flat pace of sales.  The most recent numbers project a 6% increase in property values and a 4.16% to 5.4% increase in interest rates by the close of 2014.  With anticipated increases in both prices and interest rates, sales volumes may remain stable and at balanced levels. 

Supply and demand are ultimately at the root of how expectancies and predictions are reached, playing a pivotal role in the 2014 real estate market forecast.  While the supply of home inventory could become heightened due to escalating property values, the demand will also be increased thanks to a somewhat strengthened economy.  Because of this anticipated surge in both home prices and interest rates, the market will likely remain at a steady level.

On the other hand, the new construction market is predicted to boom in 2014. With more financing for new development becoming available, the sales of newly built homes are expected to climb by a staggering 18.5% next year.  In addition to this surge in sales of new construction, a forecast for a projected 25% increase in new construction starts should help to boost the overall market.

Calculations derived by real estate associations or market economists are certainly worthy of attention.  However, it is imperative to understand that these are national predictions -- a blanket forecast gauging the general direction the market will take nationally.  Because real estate is local, it is important to take your area dynamics into consideration for insights closer to home.  Your area could potentially be better or worse. 

For a personalized forecast reflecting your community or neighborhood, please contact me today for additional information.  Regardless of whether you are looking to sell or buy in 2014, the forecast for the real estate market in 2014 appears promising!  Happy New Year to all!

Allyson Hoffman, ABR, ACRE, CDPE, CRS, e-PRO, GRI, SFR, SRES
RE/MAX Villager
Serving Chicago's North Shore, North and Northwest Suburbs
[email protected]

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Allyson Hoffman is your ultimate real estate resource for Chicago's North Shore, North and Northwest Suburbs and surrounding areas. Visit my website for detailed information regarding today’s real estate market.

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