With less than a month left in 2013 many of us are planning ahead for the New Year. And for some of us decisions regarding real estate will need to be made. Is 2014 the year to buy, or will it be the year to sell, and how does one decide which choice suits them best? While no one can say with complete confidence exactly what the market will bear in the coming year, there are several trends from the 2013 residential real estate market that most experts expect to continue into the New Year. Knowing these trends can be a useful place to start your planning. The following is a list of notable residential real estate trends that many experts have noted in years past and that some also predict will continue into 2014.
Home prices increasing – Last month Zillow.com reported an 8.6% year-over-year increase in home prices and values in the state of Colorado. Their data indicates a steady rise in home prices and values since the 4th quarter of 2012. The increase in Colorado is higher than all other states in our region besides Arizona. These gains can be attributed to increased demand and low inventory.
Increased buyer side demand – Dr. Mark Fleming, chief economist for CoreLogic (CoreLogic is a leading provider in consumer, financial and property information) confirmed in July that the market is experiencing Increasing demand for new and existing homes.
Low available inventory – Fleming chief economist for CoreLogic also confirmed that low housing inventory was a major factor in 2013 while noting that there is a cause and effect relationship between low inventory and increasing prices.
Rising mortgage rates – While interest rates are still lower than historical averages they are currently trending higher. A survey conducted by BankRate.com shows an average increase in Colorado 30 year fixed mortgage rates from 3.41% in May to 4.65% in July. Those numbers represent the biggest increase in that amount of time since 1998.
Declining foreclosure rates – According to a report released in November by the Colorado Division of Housing: Colorado foreclosure fillings fell to their lowest levels in October of 2013 since 2007. The 55.2 percent drop in October was the largest year over year drop in the 7 year history of the record. An economist for the CDH noted that foreclosure activity is approaching pre housing market crash levels.
Being aware of the afore mentioned trends may prove useful in determining your real estate investment strategies for the coming years, but remember that market conditions are constantly changing and often very quickly. With that in mind contact Steve Charlett employing broker of Doctor Relocation LLC for the most up to date analysis of Colorado’s residential real estate market.