After a year of exponential growth in many markets, home buyers and sellers have a renewed optimism that the real estate market is “back to normal.” But today’s normal is more of a “new normal.”
“Normal is defined as what we expect. Today’s real estate market represents more of a reset off the boom – and bust – of the past decade,” said Allen Tate President and COO Pat Riley in the January-February edition of Carolinas Market Update, a bi-monthly real estate video series produced by the Allen Tate Companies.
The “new normal” is a healthy place to be, said Riley, as home sales, appreciation and demand return to levels that are sustainable long-term. For Allen Tate, that means a 30 percent year-over-year increase in closings in 2013 and more than 20,000 closed sales units.
What can we expect moving forward in 2014?
- As new construction resumes, the resale market will become less competitive.
- Annual price appreciation is expected to roll back to 3-5 percent this year and 2-4 percent in 2015, where the market hovered steadily from 1950 to 1999.
- Improvement in the overall economy will better position buyers financially.
- Interest rates will continue a slow rise, peaking at around 5.75 percent in 2015.
- Job creation in the Carolinas will continue to increase buyer and renter demand.
Riley urges potential sellers to act now. “With rising inventories and rising interest rates, what you want to buy may be increasing in value more than what you are trying to sell.”
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends and predictions about the real estate market in North and South Carolina.
To access the latest Carolinas Market Update, go to the Allen Tate YouTube channel (www.youtube.com/theallentatecompany) or contact any Allen Tate Realtor®.