Real Estate Trends to Watch in 2014
Are you looking to buy or sell a home this year? To help you stay ahead of the curve (and the competition), we’ve invited our friend Lora Kazanjian, a Top 1% realtor in Michigan, to give us the scoop on the latest trends making real estate headlines this year. Lora has a keen understanding of the evolving southeastern Michigan real estate market and is here to answer your questions.
With inventory at a 10-year low and interest rates threatening to increase in the early part of 2014, there are multiple trends we can expect to see in the residential real estate market.
Overall values are up eight percent, and sellers have a renewed confidence to list their homes, raising inventory levels and home values from the lowest point in a decade. On the other side of the deal table, buyers will continue to be motivated by historically low interest rates. However, the fear of rising interest rates will continue to be a decision-making factor.
In addition to economic indicators influencing purchase decisions, there are new trends emerging that buyers and sellers should take note of when looking to enter the real estate market. Here are the top real estate trends for 2014:
New construction homes impact home prices. The shortage of new construction homes on the market will continue to drive up existing home prices. We are seeing the purchase of older homes that are subsequently torn down to create space for new construction again.
Sellers trade up for larger homes. Sellers currently living in $250,000-$400,000 homes will enter the market to “buy up” and purchase a larger, more substantial home. This will also create stronger activity in the next price range.
Buyers make lifestyle-motivated decisions. Downsizing, resizing and a more lifestyle-conscious attitude is the mindset for Baby Boomers and young professionals. These demographics have a significant presence in the market, and they are looking to simplify and cut costs. We will also see a transition to smaller, move-in ready homes, including ranch homes with open floor plans. The condo market is revitalized and luxury condos are also sought after for these buyers.
Urban living continues to gain popularity. Urban living is a continued trend. Cities in Metro Detroit that offer downtown living with stores and restaurants are a draw to buyers.
Demand increases for move-in ready homes. Renovated, remodeled and move-in ready homes will continue to sell for a premium. Homes that have these qualities will sell faster and for the most money the market will bear.
Home staging remains essential. Staging a home with little to no clutter, lots of open spaces and clean lines helps a buyer to envision the home as their own. Style-wise, traditional homebuyers like clean lines and less fuss, while the new “modern” design buyer is looking for a mid-century modern home.
Whether you are selling or buying a home, 2014 is a great time to enter the real estate market.
Do you have a question for Lora? Connect with her on Facebook or leave a comment below!
Lora Kazanjian, a Top 1% realtor in Michigan, is a savvy professional with a keen understanding of the evolving southeastern Michigan real estate market. She acts as an advocate on behalf of her clients, going above and beyond to ensure the seller or buyer is completely comfortable with this meaningful life decision. From innate intuitiveness and problem solving skills to the constant communication and compassion of a true partner, Lora delivers an elevated real estate experience.