Residential Real Estate Growth Projected to Continue Through 2016!

Posted on: April 29, 2014

The residential real estate market is heating up with the warm weather! While the year got off to a slow start, it seems that spring is finally catching up to us and the spring market is beginning in earnest! Consumer confidence is rising as unemployment falls, which is imparting new energy to a real estate market that has been sluggish during the winter months.

Signs That Market Growth is Real

While the specifics vary depending on market, there are some residential home sales statistics that demonstrate how very real the market growth is:

• More condos and single-family homes sold in 2013 than in 2007 in 2 out of every 3 neighborhoods
• Sales prices continue to improve year-over-year since 2012, although growth has slowed in some parts of the country
• Median sales prices in even some of the slowest markets are up 4 to 6 percent, and many markets have seen double-digit growth in sales prices

Some markets have seen a sluggish winter – due in part to poor weather, and in part to a period of normalization after the artificially-inflated demand of 2012 and 2013. Low mortgage interest rates and reduced supply meant that prices rose quickly during this period, and sales reflected a higher-than-normal demand. As the market continues positive, supply is slowly catching up to demand, resulting in a normalization in prices and growth in sales. But the growth in residential real estate sales is real, and it’s a trend that analysts predict will continue through at least 2016.

2014 is Shaping Up to be a Great Year

It’s still early in 2014 to make a definitive call on how the market is performing, but as we head into the busiest time of the year for real estate sales, now seems like a good time to review analysts’ predictions for 2014!

• Home sales are forecast to increase 10 percent over last year
• Sales prices are predicted to rise by 6 percent nationally
• With fewer homes meaning less inventory, homes are selling more quickly

For sellers, this is great news. Homes should sell faster, and sellers can expect to get more for their homes. For buyers, this news is a signal to move quickly to find your dream home. Now is the time to buy to maximize the return on your investment.


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