The real estate market will continue its road to recovery in 2014, with home prices rising 6 percent and mortgage rates hitting 5.4 percent. In addition, demand is predicted to plateau, all according to Lawrence Yun, Chief Economist and Senior Vice President of Research for the National Association of REALTORS.
Other factors aim to set the market back on the right path. Although there could be a possible negative impact due to rising mortgage rates, job creation and loosening underwriting standards should balance out 2014's sales volumes.
Yun does not see an increase in unit sales nationwide as inventory levels remain an issue to keep an eye on.
Existing home sales may remain flat, new home sales could rise by 25 percent from 430,000 to510,000 next year. This part of the market is still in recovery due to the difficulties for smaller builders to obtain financing. This should continue to ease throughout next year.
Despite some cautionary areas, the real estate market has its beacons of potential. The industry may not be back to its best numbers yet, but we are still heading in the right direction and making our way down the road to recovery.