Zillow Predicts 2014 US Housing Market Trends : Boca Raton Homes For Sale, Boca Raton Homes For Rent

What is Zillow Saying?

Predictions for next year's housing market is beginning with the close of calendar 2013.  Svenja Gudell, Director of Economic Research at Zillow, has made some predictions for the US housing market in 2014.
Zillow expects the housing market to continue to recover, but at a slower pace.

Zillow predicts home values will increase by 3% in the US during 2014.  Zillow expects the following factors to dampen the growth: 1) higher mortgage rates; 2) higher prices; 3) more supply-- from a) fewer underwater homeowners and b) new construction.

Mortgage rates are predicted to be higher, according to Zillow, due to a reduction in Federal Reserve bond purchasing.  Zillow expects rates to exceed 5% in 2014; Mortgage Banker's Association reported the average 30-year fixed rate was 4.51% at the week ended November 29, 2013.

Somewhat offsetting the rising rates will be increased mortgage availability, according to Zillow.  With a reduction in refinancing activity, Zillow believes lenders will supplement the lost business by competing for new buyers.  Zillow's theory is this will spur looser lending standards.

Zillow also predicts as decrease in homeownership rates.  The predicted weak labor market and continued foreclosures are predicted to displace homeowners, according to Zillow.  As such, the company expects a continued high demand for rentals.


What do you think? Leave your comments here.


I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Robert Shiller On US Housing Market

Robert Shiller, co-founder of Case-Shiller Index

Rober Shiller, co-founder of Case-Shiller Index was on CNBC a few weeks back to discuss the US housing market.  He concluded the US housing market recovery is not on solid ground.

His theory is that large institutional investors bought up 100,000 homes, mostly foreclosed, with vast amounts of cash.  He theorized this pushed up home prices, especially in some of the "hotter" US markets, such as on the West Coast. 

Many of the investors are renting out these homes and some are selling bonds backed by the rental streams.  Shiller theorizes that if these investors see lower-than-expected returns, they won't hesitate to dump the properties.  I would take it one step further-- if prices continue to robustly appreciate, these investors might take the appreciation value and forgo the rental streams for the "next big trade."

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Case Shiller Housing Index: September 2013: South Florida Market Continues To Outpace US Price Increases

Home prices in the US were near mid-2004 levels in September 2013, according to the Case Shiller Index. 

The US market as indicated by the Case Shiller Composite 10 and Composite 20 showed a year-over-year increase of 13.3% in September 2013.

The South Florida market had a more robust price increase of 100 basis points when compared with the US market as a whole.  The South Florida home market was up 14.3% on a year-over-year basis in September 2013, according to the Case Shiller Index report.

The report touched upon a concern about a potential "bubble" in the housing market.  The commentary noted, "the strong price gains in the West are sparking questions and concerns about the possibility of another bubble."  The report also pointed out home construction is below the boom levels and interest rates are expected to rise. 

Other areas of interest:

Sep-13	Monthly	Sequential	Annual
Metropolitan Area	Level	Change	Change
Boston	169.04	0.50%	7.50%
Chicago	128.05	0.30%	9.70%
Miami	171.7	0.80%	14.30%
Minneapolis	138.4	0.80%	10.10%
New York	173.45	0.60%	4.30%
Tampa	154.24	0.20%	14.50%
Composite 10	180.03	0.70%	13.30%
Composite 20	165.66	0.70%	13.30%
Source:
S&P Indices
Firserv

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty