10 Real Estate Predictions for 2014

10 Real Estate Predictions for 2014 Searching for a comprehensive list of what real estate will look like in 2014? Look no further, because we've culled together top predictions from around the web for you right here, with insights from Trulia.com, Zillow.com, Forbes, the NAHB and NAR. 1. Unemployment will stabilize between 6.9 percent to 7.2 percent as people re-enter the labor market and start looking for jobs. 2. Affordability will get worse, although price increases will slow from the unsustainable pace of 2013. 3. Expect mortgage rate increases next year. Don't expect major hikes to scare markets and buyers, but anticipate small upward rate increases as the Fed tapers further. 4. Move-up buyers will be less discouraged by rising prices and interest rates than investors or first-time buyers. 5. Gains in housing will hold up and even continue in 2014, but more moderately in all sectors: new homes, existing homes, and building starts. Growth, however, will be uneven across states. 6. Higher prices will encourage listings for homeowners whose homes were underwater; buyers will face less competition from investors who scale back from buying as prices rise. 7. Existing-home sales will climb 4 percent to 5.2 million, a 7.5 percent increase from 2012. New-home sales may climb by another 16 percent to 580,000 next year (2013 saw an amazing 36 percent increase over 2012). 8. Areas with inventory shortages should cool, but watch rising mortgage rates (see #3). Sales in California and Arizona will be rapid, while New York and Florida will continue to deal with gluts. 9. Prices could slow for the wrong reasons, too, if there's another government shutdown to dampen consumer confidence, which hurts both demand and pricing. 10. Looser credit may help renters become new owners. With fewer foreclosures, single-family rentals will tighten making buying more appealing. [Back to Top]

// Featured Chart

Existing Home Sales fell by 4.3 percent from October to November to an annual rate of 4.90 million units and down 1.2 percent from a year earlier, marking the first year-over-year decrease in 29 months. [Back to Top]

// Tech Corner

7 Ways to Take Better Property Photos The old adage says a picture is worth a thousand words, but a good picture is worth a lot more than that in our digital, visual age. One or two slapdash snapshots won't help your chances of grabbing eyeballs. Here's how to brush up those picture-taking skills: 1. High five! Professional photographers always take multiple pictures of the same subject, and you should too. Take five and then choose the best later. 2. Focus facts We all love a good triple mocha latte with two extra shots, but it won't help steady your hand for pictures. Carry a folding tri-pod in your car and use it to keep photos in focus. 3. Don't cut corners. Pick the best corner of each room and place it dead center in the photo, it shows off more room detail and looks more professional, too. 4. Stairway to selling. Overhead pictures taken from a staircase, step-stool, or ladder can also show more room. 5. You can't take just one. If you're dealing with a very large space, take more than one photo and edit them together with an app like Frametastic. 6. Speaking of editing. You don't need to spend a fortune on software like Photoshop, just get a desktop app like Picasa, which is easy and free. If you prefer taking snaps with your smart phone check out Camera360 or ProCamera or search your app store. 7. The great outdoors. To buyers, a home's outside features are just as interesting as those on the inside, so make sure to highlight key outdoor and patio features. If you've got a condo or townhouse make sure to include homeowners' amenities like the pool or the gym as well. [Back to Top]

// The Tip Sheet

Be a Listing Machine in 2014 Have a killer listing presentation and during your first meeting avoid anything resembling bragging, either on yourself or your company. Try to find out what the sellers are looking for in an agent, and respond to those needs in generic terms. TIP: Explain the specifics of your unique value proposition using accolades and certifications, photos, charts, and graphs to support your opinions. Dominate Expireds. Don't assume your current listings will re-up with you. Make sure they last through the summer because the market is going to heat up. Also, call every other expired listing in your market—don't just assume there aren't any. TIP: Download "Find the Gold in Expired Listings" from Keeping Current Matters. Handle FSBO Objections Immediately. If they don't bring up the term "For Sale By Owner" then you should. As the market improves people may consider selling a home on their own a viable option, but inform them that statistics on successful FSBOs are on the decline, and have decreased from 19 to 9 percent over the last 20 years, according to the National Association of Realtors. TIP: Create a list of all the people the seller might have to negotiate with and put it in your presentation. Price Properly. Be prepared to deal with unrealistic pricing expectations and ways to overcome them. TIP: Be prepared with accurate comps and home data, of course, but don't forget to point out how you'd handle unrealistic buyers. Present Yourself as the Local Expert. Be prepared to explain where pricing is going and why it's a good time to list now... or not. TIP: If your seller will need a new loan, be prepared to explain how potential interest rate increases could impact a decision to wait. Source: Synopsis of a recent Keeping Current Matters webinar, please visit www.keepingcurrentmatters.com for more information. [Back to Top]