May
17

National Association of Realtors’ Chief Economist Releases 2014 Expectations

May 17, 2014

National Association of RealtorsIn a new statement by the National Association of Realtors® (NAR), the severe weather was blamed for the slump at the start of the year nationally, but an uptrend is expected with healthy underlying demand over the balance of the year and through 2015.

Words of wisdom from NAR chief economist Lawrence Yun explained that the slow and steady job creation compared to the leaps in population have caused the markets to remain weaker. That’s why “Main Street America does not fully feel the recovery.” Yun explained more at  the Realtor® Party Convention & Trade Expo.

Pent-up demand is helping the market to rise, though inventory constraints and tight credit conditions continue to impede the market. These factors, in combination with rising home prices and higher mortgage interest rates, mean that the growth is present but limited – and will likely continue in this fashion throughout the rest of the year and into 2015. Still, it’s important to remember that slow and steady wins the race.

Another upside of rising prices is an increase in home equity. While it may not be a boom back to pre-recession numbers, last year, the median existing-home price rose 11.5 percent to just over $197,000. Home price growth is likely to continue to change as more new homes are constructed, with the median price increasing about six percent in 2014 to $209,000 and reaching nearly $219,000 next year as market conditions begin to balance.

You can read more about Chief Economist Yun’s expectations for 2014 for Chicago real estate and beyond at www.realtor.org.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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