Realtor.com and Zillow shared their predictions on what they anticipate in the housing market for the coming year. Both organizations predict home appreciation to continue to rise throughout the year, thus bringing more homeowners into positive equity. They also foresee mortgage interest rates to continue to rise.
While not mentioned in Zillow’s predictions, Realtor.com anticipates inventory levels to stabilize, but home affordability to make further declines due to price increases outpacing income growth. On the other hand, Zillow’s prediction that borrowers will have an easier time acquiring mortgages in 2014 was not mentioned by Realtor.com.
As for the impact foreclosures will have on the housing market, Realtor.com believes that foreclosures “are likely to play a minimal role in the housing market in 2014” because foreclosures will continue to drop. Zillow believes that foreclosures, combined with rising rental demand, will cause homeownership rates to “fall to their lowest point in nearly two decades.”