Residents of Michigan who may be interested in buying or selling a home in 2014 are paying attention to the changes in the real estate market that many experts are predicting for the year. Although it is expected that real estate purchases and sales in 2014 will continue to improve over the levels seen when the housing market collapsed, several factors are expected to lead to growth at slower rates than were seen in 2013.
One of the primary factors that is expected to curb home purchases in 2014 is an anticipated rise in mortgage interest rates. This interest rate spike is being predicted due to the Federal Reserve’s plan to begin to scale back its multibillion dollar bond buying program that was initiated in an effort to give the real estate market a jump start after the housing market bubble burst. Experts expect that higher interest rates will price many potential homeowner’s out of the market, resulting in more homes available for sale.
This anticipated increase in inventory is expected to result in fewer real estate markets experiencing the types of bidding wars that became common in 2013. Experts also predict that home values will continue to rise in 2014 but at a rate slightly lower than was seen in 2013. The increase in interest rates and home prices is also expected to lead to less investor activity in the real estate market for the upcoming year.
Buying or selling a home is often one of the most important financial transactions an individual can make. Attorneys working in the area of real estate law may be able to help their clients to examine potential real estate transactions to ensure that their financial interests are being protected.
Source: FOX Business, “What Buyers and Sellers Can Expect in 2014”, Donna Fuscaldo, December 30, 2013