2014 is shaping up to be a great time to buy a home in the state of Florida, especially along the northwest coast. The housing market in Destin will continue to stabilize and improve, meaning that buyers can still find great deals on houses while sellers can sale their property for more money.
Higher Home Values
Overall, the entire housing market nationwide expects improvements. Zillow predicts an overall increase in home values by three percent by the end of the year. MSN Real Estate believes homes will see an overall increase of seven percent over their 2010 values. Furthermore, the new housing growth that began in 2012 continues in 2014. Developers plan to build 1,130,000 new houses in 2014, a big leap forward from the 725,000 homes built in 2012.
Closer to home, Destin and its surrounding communities should also see their property values rise. The housing market for nearby Panama City Beach is expected to explode. Within four years, investors will see the value of their home increase by 26.9 percent according to MSN. This is due to several factors, including the construction of the new Northwest Florida Beaches International Airport. Now that visitors can reach Destin by air, they are going to need new places to stay.
Seller’s Market
The increase in housing prices is certainly a big bonus for sellers in 2014. Those who sat on the fence during the housing market crisis and refused to sell their home for less than what it was worth have the possibility of reaping big rewards in 2014. Waiting until 2014 to sell a home means that many sellers can list their property at a higher amount than they could have done in 2013, 2012, or 2011.
Higher Interest Rates
However, 2014 will be a banner year for buyers as well as sellers. Zillow also predicts that the average mortgage rate will reach five percent by the end of the year. During the second week of December, rates reached 4.46 percent. While still low, these rates are higher than they were in 2013 when the average rate on a 30 year mortgage was 3.32 percent, according to the Wall Street Journal.
Buyer’s Market
With a rising mortgage rate and looming house prices, buyers have a limited time left in this buyer’s market. Zillow predicts that it will be easier for buyers to get a mortgage in 2014. This is good news for anyone who wants to buy a home and take advantage of housing prices and mortgage rates before they go any higher. In fact, those who choose to act in 2014 instead of waiting until 2015 or later will save money in the long run.
Experts predict that both home prices and interest rates will increase throughout 2014. This means that 2014 is likely one of the final years where the real estate market will still be a buyer’s market. Sellers will see increased gains throughout 2014, and if the trend holds true, eventually the real estate market will return to the seller’s market of the late 1990s and early 2000s.
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I’d like to throw out one more prediction for the housing market this year that I think is going to have a significant impact on the next several years. I have heard that the rate of home ownership is predicted to drop to it’s lowest rate in about 20 years. As it seems that home ownership is seen as unfeasible for many people that would have been in that traditional age for buying their first home, I think that there is some serious weight behind this prediction.