5 Trends for Real Estate in 2014

Posted by Highrises.com Concierge on Saturday, December 28th, 2013 at 12:55pm.


Experts are predicting the following trends in the housing market for 2014:

1. Increase in Housing Inventory

The Urban Land Institute thinks this will be the last year that low inventory will aid housing prices.  Forbes believes that the rapid price increases of 2013 were greatly due to this shortage and expects prices to adjust to a healthy and stable pricing as the inventory matches the need more closely.  At Highrises.com our agents reported 2013 the year of lines to see new listings and homes closing before they were even listed.

2. Increase in Interest Rates

ULI expects ten-year treasuries to rise slightly in 2014 as they have been below 5% for quite some time.   The average mortgage rate for the last 36 years has been 9.2%.  With the rise in the rates will come less strict qualifying options to compensate for the rise in mortgage costs.  Also expected is a rise in new construction loans as banks are seeing real estate as a willing risk again.

3.  The New “it” Location=Cities

As Gen X and Gen Y’ers are starting to dominate the real estate market, they bring with them a different style of desired living.  The shift is going from suburban to urban and surrounded by activities and wishing to work close to home.  Currently 39% of Gen Y’ers live in a medium or big city and 40% think they will be living in a medium or big city in 5 years from now.  The most important factors for housing: proximity to work, walkability, proximity to friends/family, close to shopping/entertainment and being near public transportation.

4.  Homes Get Smaller, Common Areas Bigger

With the shift to many urban developments, the size of the houses are getting smaller, but the list of desired common spaces is getting longer.  In 2013 Highrises.com wrote several blogs about condos nationwide.  Nearly all of the Condos built in the last few years have common areas such as lounges, film screening rooms, wine cellars, restaurants, state of the art gyms, bike rooms, pools and even dog parks.  In 2014 it will be interesting to see what other trends emerge as standard in high-rise urban living.

5.  Second Tier Locations Get Greater Influence.

For a long time real estate has watched the traditional big cities like San Francisco, but now the other cities are making waves in the real estate market and are being paid attention to.  According to the Emerging Trends in Real Estate by ULI, the following markets are ranked the top 20 in relation to their levels of Investment, Development and Homebuilding:

  1. San Francisco

  2. Houston

  3. San Jose

  4. New York City

  5. Dallas/Fort Worth

  6. Seattle

  7. Austin

  8. Miami

  9. Boston

  10. Orange County

  11. Denver

  12. Nashville

  13. Los Angeles

  14. San Antonio

  15. San DIego

  16. Charlotte

  17. Raleigh/Durham

  18. Salt Lake City

  19. Portland, OR

  20. Minneapolis/St. Paul

Check out condos for sale in your city HERE

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