We’ve already seen a change in the real estate market since its lowest point of decline in 2007. But what does the New Year have in store?
Leading the Recovery
Investors are branching out. They are switching their focus from the big cities to potential investments in cities like Portland, Boston, and Seattle. Here they are able to find more housing deals than in the competitive markets of New York City and San Francisco. With investment dollars coming to these new cities their markets will see a positive change.
A Seller’s Market
What was once a buyer’s market is now a seller’s market. Homes are still priced to sell, but as the market recovers sellers are able to ask more pleasing prices that they can be happy with. Another factor benefiting sellers is buyers are looking to make a purchase before interest rates go up.
Job Growth and the Real Estate Market
Job growth directly affects the real estate market and a city’s economy dictates its recovery. The real estate market’s potential for growth is held back by the high unemployment rates. Cities with low unemployment rates will see better growth in the New Year than cities with higher rates.
Condos and Multi-Family Apartments
This year we saw an increase in multi-family building, but the market is changing and these much needed buildings don’t have the same demand going forward. At the same time, condo buildings have taken a back burner. New condo development is low. Instead, investors are looking at building apartment buildings that can be changed to condos when the market is ready for them.
The New Professionals
Suburban life was once the most desired way of living, but with a new generation of professionals comes a switch in the market. This new generation prefers urban. They enjoy easily accessible amenities, thus changing the housing market from suburban to urban. In 2014 we’ll see this change become more prominent.
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