Wheatland Realty Agent Nicole Tudisco discusses the forecast for the 2014 housing market.
On any given day you can read about the housing market and even get completely opposite information. For instance, about 2.5 weeks ago CNN said that home prices jumped 13.6% but the same day the Los Angeles Times said that home price increases are slow. The catch is that both media outlets derived their headlines from the same report. It came down to interpretation of the report which can be confusing to the rest of us.
We need to remember that though the national economy does affect housing prices, real estate is done on a local level. We can see in the next 3 charts the difference a macro level view compares to a micro view. The first image shows the national market by region in a year over year price change format. The second slide breaks it down by state. So, for example, Illinois home prices are up 6.15% regionally but by state it’s 4.3%.
Break it down again to the month over month viewpoint rather than year over year and you have an even different picture of .01% change in home prices. Then consider when it comes to selling your home it breaks all the way down to your particular neighborhood. What your neighbors’ house sells for in the last 3-6 months will hold the most weight on what your home will sell for.
Overall 2014 is expected to improve over 2013 in general. Some expectations are higher than others. We think that a lot of people who have been under water for a long time will have the ability to move up this year. Last Spring was fantastic and if this Spring is even better, it’s a good sign of more stability returning to the market place.
If you would like to know the values in your particular neighborhood contact us for a complimentary assessment.
Nicole & Tony Tudisco, Realtors
Wheatland Realty Inc.