Friday, January 17, 2014

Economic Growth Gains Momentum | 2014

Nationwide economic growth is projected to increase to 2.9 percent from the estimated 2.6 percent growth in 2013, according to Fannie Mae’s Economic & Strategic Research Group reports. This increase can be attributed the return of consumer confidence following the government shutdown last fall, which affected hard working men and women across numerous industries.  With rebounded optimism, an increase in both consumer and business spending is expected to boost overall economic growth throughout 2014.

A significant driving force contributing to economic growth, according to Fannie Mae’s Chief Economist Doug Duncan, is the continued improvement in the real estate market. RealtyTrac published some encouraging statistics in its most recent Foreclosure Market Report, which recorded a 26 percent decrease in foreclosure fillings from 2012 to 2013. With decreases in foreclosure fillings comes an increase in the strength of consumer housing attitudes, which allows for the continuous improvement of the housing market.

On a local level, as of November 2013, Tampa Bay’s unemployment rate has fallen to 6.2 percent from the shocking 2010 peak of 12.5 percent, according to the Tampa Bay Times. In response to growing demand for goods and services from consumers and businesses, labor market improvements that support income growth are expected to amplify. If income increases can close the gap between home price increases, the affordability of home purchases will rise and the dream of homeownership can become a greater reality for those who had previously thought it was out of reach.   

Tuesday, January 14, 2014

What will The Real Estate Market in 2014 be like?

After a double digit increase in home prices and sales occurred in 2013, this positive trend in the real estate market will continue throughout 2014 as well. As greater Tampa Real Estate professionals, SI Real Estate team is confident that the recovery of the housing market, job growth, and lower unemployment rate will continue to make housing more affordable.

Here in the greater Tampa Bay area, there will be more homes available than there have been in several years. Homebuilders have regained enormous trust in the housing market and have started building more new homes than we have seen in many years!  They cannot build homes fast enough. This will help to increase real estate inventory and satisfy the high customer demand for both new and resale properties.

In addition, according to Lawrence Yun, chief economist as the National Association of Realtors, “2013 has marked the second straight year of a very respectable recovery with a 20% cumulative increase in existing-home sales over the past two years, and nearly a 20% rise in home prices.”   Home prices are expected to grow in 2014 by 5% which “will be good for the general consumer in 2014,” said Mr. Yun.

Also, the rising prices of 2013, helped over 2.5 million homeowners with underwater mortgages move to a positive equity status, according to  Moreover, the foreclosure market has been slowing down in the recent years and the number of foreclosures went down by a strong 33% since the end of 2012. As the overall housing market is becoming stronger, the number of foreclosures will keep declining.

The year 2014 will be even more exciting year for the entire American economy as we see the results of our hard work in this recovery.  The Real Estate market won’t be an exception.  Here at SI Real Estate, we have managed to realize a great mixture of exceptional history, knowledge and skill, and customer care in our housing market. This blend has enabled us to build on our past achievements and hopefully exceed them in 2014.