In 2013, home prices around the country surged nearly 11% according to information gathered by Clear Capital. The firm found that home prices increased in 225 of the 276 tracked cities, raising the average home price across the United States by $30,000.
But what should real estate investors expect in 2014?
Several months ago, experts were openly fearful that the US housing market was experiencing another bubble that would soon burst, but now that 2014 has finally arrived, it appears evident that no such bubble exists. Instead, most real estate experts now agree that housing prices will only continue to increase in 2014, but at a slower, steadier rate.
If you’re considering fix & flip investing in 2014, all indicators point to a successful year. The mania of last year will die down and the possibility of making significant return on investment will still be present, making the overall outlook extremely positive. Zillow predicts that home prices will increase by 3% nationwide in 2014 and that it will be easier for borrowers to get mortgages in 2014. Zillow also predicts that mortgage rates will reach 5% by the end of 2014, so the sooner you can find a solid property to flip, the better.
We’re still in the midst of the cyclical winter lull when demand and home prices are at their lowest levels. A property bought in the winter and sold in the spring or summer has the highest potential ROI, so begin your research and talk to your team at ZINC about rehab loans as soon as you can.
Home Ownership Rates May Drop, Making Buy & Hold Ideal
On the flip side, Zillow also predicts that home ownership rates will drop to their lowest point in nearly two decades this year. People who suffered the most during the recent housing crisis are not yet interested in trying their hand at home ownership again. So if you live in a community where the residents are particularly interested in rentals, 2014 might be the perfect year to consider rental real estate investing, also known as buy & hold. With a buy & hold strategy, you’ll be able to capitalize on the high demand for rental properties while watching the value of your property go up over the course of two or three years.
Whatever your house flipping or rental property investing goals are this year, the team at ZINC Financial is ready to help. Call 559.326.2509 today to learn more about ZINC’s various loan programs and see how you can take advantage of ripe housing conditions in 2014.