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What Will 2014 Bring For the Housing Market?

by UrbanTurf Staff

What Will 2014 Bring For the Housing Market?: Figure 1

The end of the year inevitably brings predictions for the next, and that has already begun for the housing market. Trulia put out its set of predictions on Wednesday morning and here are a few:

  • Buying a home will become more expensive in 2014. This prediction is not based on the idea that prices will continue to skyrocket, but on the thinking that rents and incomes will not rise as fast as housing prices. Rising interest rates will also be a factor.

  • More inventory will lead to a “less frenzied” home buying atmosphere. The combination of new construction product and more homeowners deciding to sell because of rising prices will make for more choices i.e. an easier home buying market next year.

  • 2014 will be the year of the repeat buyer. As investors back away due to rising prices and the burden of saving for a down payment deters first-timers, repeat buyers will fill the gap. “They’re less discouraged by rising prices than either investors or first-time buyers because the home they already own has also risen in value,” Trulia economist Jed Kolko wrote. “Also, the down payment is less of a challenge for repeat buyers if they have equity in their current home.”

Trulia also released its list of ten housing market to watch in 2014, those with “recent job growth and longer-term economic success, as well as recent construction activity typical of vibrant markets.” The Bethesda-Rockville-Frederick area was the one local jurisdiction to make the list. We have reached out to Kolko for more insight into this interesting inclusion.

See other articles related to: dclofts, dc housing prices

This article originally published at https://dc.urbanturf.com/articles/blog/what_will_2014_bring_for_the_housing_market/7917

3 Comments

  1. Calvin H. Gurley said at 6:19 am on Thursday December 12, 2013:
    I disagree. Buying a house is currently expensive...therefore this financial challenge will continue in 2014. Secondly, local banks are back to their red-lining tactics again...making it harder for African-Americans to qualify for mortgage loans - as quiet as it is kept. Where is Chairman of the Finance Committee Charlene Drew Jarvis? Third. D.C. will experience a bubble in the housing market. Too many buyers are artificially driving up the price of a home. Therefore, resale of a just purchased home will not appreciate in bringing equity into the sale. New apartments are being cheaply built along with new housing in the District. Resale homes are being dressed-up for sale using cheap materials and resources further increasing the cost to maintain and redo fix-ups by the new homeowner. Buyer beware. Calvin H. Gurley 2014 Candidate for the D.C. Council
  1. jj said at 7:58 am on Thursday December 12, 2013:
    All I can say is Dupont Circle has some wildly over-priced condos on the market...and thank gawd no one is buying them. Developers are just plain getting greedy. We need a serious reality check.
  1. JC1764 said at 6:14 pm on Friday December 13, 2013:
    I agree. DC has seen home price increases that far outpace wage increases in the region. The backbone of a region is its workers, if they're not making enough to keep up with housing, demand for homes decreases at every price point. DC will always be a healthy market with great jobs. But there is a group with entrenched interests that wants us to believe we will see DC forever enjoy the 2007-2012 boom growth rates. As the economy continues to improve, young people who took that job in DC are going to start getting recruited elsewhere. In my office alone, 14 people have transferred to other cities of the 25 in my entering consultant class as contracts dried up and raises were less generous.

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