Housing Predictions for 2014Dec 10 2013
Zillow has made some “bold” predictions for 2014, which include:
- US home values will increase by 3 percent
- Mortgage rates will crack 5 percent
- Borrowers will have easier access to a mortgage
Even though Zillow predicts mortgage rates to rise above 5 percent by the end of 2014, home affordability will still remain high, despite the rate increase. Zillow Chief Economist Stan Humphries says that the more modest home value growth he predicts for 2014 reflects a more mature, stable market that will exist a year from now.
Additionally, based on projections for unemployment rates, population growth and the home values via the Zillow Home Value Forecast, Zillow predicts the following metros will have the hottest housing markets in 2014: Salt Lake City; Seattle; Austin, Texas; San Jose, Calif.; Miami; Raleigh, N.C.; Jacksonville, Fla.; San Diego; Portland, Ore.; and Boston.