04 Jan Shadow Wood at the Brooks News
Happy New Year!
2014 is officially here and what it will bring is really anyone’s guess. But as usual, many experts have weighed in with their predictions. Overall, the feeling is mutual that this year will be another good year for real estate. Here are what housing experts expect to see:
- While a short supply of homes for sale drove prices up in 2013, this year more homes on the market, both old and new, should help inventory return to traditional levels. Here in Southwest Florida, new construction is exploding giving buyers more options.
- Mortgage rates will rise, but loans will be easier to obtain. Rising rates means business will dwindle forcing lenders to compete for buyers by loosening standards.
- Home prices will continue to rise, but at a slower rate due to higher mortgage rates, more supply, and new construction.
- Fewer homes will be underwater as rising home prices help owners regain some equity.
- Foreclosures will fade. We’ve seen this in Southwest Florida with foreclosures and even short sales becoming a nominal factor in our market. Experts at RealtyTrac, which monitors the foreclosure market, says filings won’t return to pre-crisis levels until early 2015.
Here in Southwest Florida, cash is king in the majority of our transactions so the lending environment doesn’t play a huge role in our real estate transactions, but for the small percentage who do obtain loans, a strengthening job market and potentially more lenient mortgage standards may embolden you to buy in 2014.
In order for prices to level off, more inventory is needed and builders are doing their best to make that a reality. Most of our area’s smaller plots of land have been scooped up by homebuilders as well as larger plots further east of town. Land is being cleared, sales centers are popping up, and model homes are being erected quickly in preparation of arriving buyers this season.
Inventory remains low in Shadow Wood. This time last year, in all of Shadow Wood, there were 75 homes and condos for sale (according to the Multiple Listing Service 12/26/2012). Today, as of December 30, 2013, there are only 49 homes and condos for sale in all of Shadow Wood.
Shadow Wood’s single-family homes are holding steady at just over 5 months worth of inventory as of December 30, while last year this time it was 13 months worth of inventory. And condos in Shadow Wood are also holding steady at 4 months of supply, while last December it was closer to 8.5 months.
Whether buying or selling, if you are looking for Realtor representation, think of me.