The year 2013 has not yet ended, but real estate industry experts are busy making predictions for the next year. Just as exciting as 2013 is, 2014 will be even more enthralling and the real estate market is probably going to enjoy an even bigger boom. The market is already so good right now. Can it really get better? Or will it reverse and begin its plunge downhill? This is just why the industry experts are waiting in anticipation for next year to dawn, and in the meanwhile, they are spending their time forecasting future trends.
Home prices in Houston will increase by 5% in the next year
Ever heard of the saying that good times do not always last? No matter how great the surge, there is always a fall. The same can be said for the real estate market. Right now, home prices are low, mortgage rates are also good, and because of these, sales have also increased. But will the supply always meet the demand? This cannot be, and at some point, 2014 is going to demonstrate the same.
With the rise in home sales, the inventory of vacant houses is reducing and the supply might just extinguish the demand next year.
Food is going to get all the more likeable
Everyone loves to eat, and grocery stores are aware of this. In 2014, shopping centers will comprise more of grocery stores rather than retail shops. All the renowned grocers are planning to launch as many as 15 stores in Houston in just one year. Incredible, is it not? The trends are indeed shifting.
Mortgage rates will climb
Mortgage rates are expected to rise in the next year, but this will only be by a percentage or two. The expected rates for 2014 are around 4.6%. Right now, they average around 4% so this would be an increase of about 0.6%m which is fairly small.
More offices will sprout up
The vacancy rates for commercial real estate are less than 5% in some areas. In the next year, this is going to go even lower. Along with the real estate market, the job market is also booming, and so more space might be needed to accommodate the new employees.