If The Forecasters Are Correct, The Housing Sector Is Ready To Have A Positive Impact On The Rest Of The Economy In 2014.
Seven buyers, who purchased 10 or more homes in November 2013, acquired 159 properties, or about 41 percent of all homes bought by multi-home buyers in the Las Vegas region...
A home buyer's financed offer may be given more consideration in 2014.
National home prices rose between 5% and 13% in 2013, depending on which price index is considered.
Three predictions economists are making about the housing market in 2014:
1. Home prices hit the ignition button in 2013. Don't expect such a meteoric rise in 2014.
The median sale price’s year-over-year gains over the past 20 consecutive months in Las Vegas (Clark County) ranged from 1.7 percent to 35.3 percent. These annual gains have been double-digit for the last 17 months and above 20 percent for the last 13 months, heady gains indeed compared to 12 Month CD/IRA products. Rising off a cyclical trough of $110,000 in January 2012, the lowest level since April 1994, to $179,000 median for all new and resale houses and condos sold in November 2013, down 0.6 percent from $180,000 in October and up 25.6 percent from $142,500 a year earlier but still 42.6 percent below the region’s peak $312,000 median in November 2006.
Lawrence Yun, NAR chief economist, said the market is flattening. The national median existing-home price in 2013 is forecast to reflect nearly a 12 percent increase to $197,300. It is also expected to level off and rise at a more moderate pace of 5 to 5.5 percent in 2014 followed by 4 percent growth in 2015.
NAR projects total existing-home sales of 5.1 million in 2013, a 10% increase from 2012. Total existing-home sales are expected to remain around that same level in 2014 but will rise to 5.3 million in 2015.
Mortgage rates end 2013 more than a full percentage point above year-ago levels. Many economists predict mortgage rates will rise further in 2014 as the Fed continues to slow the bond-buying program that helped push rates to record lows in 2013 as the market set mortgage rates. Some economists predict mortgages will slowly become easier to get, although not in a dramatic way. Banks and mortgage lenders may face big declines in volumes and profits as refinancing opportunities fade amid higher rates.
3. Construction will finally boost overall growth.
Nationally, building activity remained depressed in 2013 which kept the economy from firing on all cylinders. Now that housing inventory has been whittled down, builders are more confident about breaking ground. Household formation should improve with steady gains in the job market and add fuel to the high demand for new homes and apartments. Housing starts were running at a seasonally adjusted annual rate of 1.09 million in November, up from a recessionary low of 554,000 in 2009 but still well below the 1.6 million average from 1995 to 2004, before the peak of the housing boom. Real estate research firms are projecting construction starts to rise to 1.1 million next year.
Las Vegas - 523 NEW home sales recorded in November for a year to date total of 6,759 sales. That is 1,832 more sales than last year - an increase of 37%. Higher prices have made it easier for builders to profitably sell new homes.