According to many real estate economists and experts, the housing recovery made great strides last year and is expected to improve even more in 2014. Last year, low inventories and low interest rates were what forced home prices to rise and even sparked many bidding wars among Florida homebuyers. Now while home prices are set to continue their increases in the Tampa Bay real estate market, it seems mortgage rates will be doing the same.
Inventory Will Return to Normal
Low inventory levels have been popular in many local real estate markets and have in fact caused problems for Clearwater homebuyers looking for a variety of home choices.
While MSN Real Estate dubbed 2013 the “year of low inventory,” it has predicted gains for this year, naming 2014 the “year of the big move.”
Regaining Positive Equity
Rising home prices in the latter half of last year “helped 2.5 million homeowners who were previously underwater regain positive equity status [in their homes],” MSN Real Estate reported. “”However, approximately 7.1 million homes were still in negative equity at that time and an estimated 10 million homeowners, or about 21.1 percent of all homeowners with a mortgage, remained “under-equitied,” with less than 20 percent in home equity.”
2014 will also see more homebuyers being lifted out of underwater status and into positive territory in Tampa Bay Area real estate.
Rising Prices Continue
Homebuyers in Clearwater and St. Pete may have been dissuaded from buying new homes this year due to rising mortgage rates. However, these rates are still relatively low compared to where they may be headed this year.
These rapidly rising rates have much to do with the Fed and its consideration of slowly eliminating its bond-buying activities while the economy improves. As long as the Fed plans to do this, mortgage rates continue to rise.
Florida homebuyers can expect to see these changes in the market this year with the addition of a few more. Need help navigating through the changing Tampa Bay real estate market? Contact me today!
Charles Rutenberg Realty
1545 Belcher Road, Clearwater FL 33764
772-452-1098 | firstname.lastname@example.org