NORTHVILLE, Mich., Jan. 21, 2014 /PRNewswire/ -- Based on current market conditions, RE/MAX of Southeastern Michigan names the top housing trends to watch in 2014. The trends are forecasted by the top brokers of RE/MAX of Southeastern Michigan. RE/MAX is the No.1 real-estate company in metro Detroit, selling more homes locally than any competitor.
1. Home inventory will remain tight.
RE/MAX brokers anticipate the inventory of homes for sale to remain lower than the demand for homes. Many homeowners have recouped some equity in their homes, which puts them in a more favorable position to consider selling. It is unlikely, however, that we will see a large shift in available inventory. Overall sales should go up, but it will likely remain a seller's market.
2. Housing market will remain competitive.
There are still buyers who began looking for a home in 2013 who have yet to purchase. These left-over buyers together with the buyers who will begin looking in 2014 will keep competition for existing homes for sale brisk.
3. New Qualified Mortgage rules take effect, will limit loan options for many buyers.
On Jan. 10, 2014, new government rules took effect with the intent of revamping the mortgage industry. From this point forward, new mortgages must only be 30 years or less, a fixed-rate or an adjustable rate. Borrowers must also pass a point/fee test in order to qualify, resulting in more stringent lending.
4. Boomerang buyers will enter the market.
Recent revisions to Federal Housing Administration guidelines will make it possible for homeowners who lost their home to foreclosure to reenter the housing market as buyers. The traditional seven-year waiting period has been revised to just one year in some cases. RE/MAX brokers expect this new market of homebuyers to begin to emerge this year and continue for the next several years.
5. Home prices will continue to rise.
In 2012 the average home price in southeast Michigan was $127,401, in 2013 the average price was $154,447. As southeast Michigan's economy continues to recover, RE/MAX brokers expect home prices will continue to rise.
"Southeast Michigan's housing market showed great improvement throughout 2013," said Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan. "We are very optimistic about 2014 and expect this trend to continue."
About RE/MAX of Southeastern Michigan
A leader in metro Detroit real estate, RE/MAX of Southeastern Michigan covers Oakland, Macomb and Wayne counties. With more than 700 sales associates and 43 offices, RE/MAX of Southeastern Michigan has helped thousands of Michigan families with their home buying and selling needs. For more information, visit www.remax-detroit.com.
RE/MAX of Southeastern Michigan is licensed through RE/MAX Regional Services (RRS), which also includes franchises in Georgia, Tennessee, Kentucky and southern Ohio. The company is part of RE/MAX, the No. 1 global real-estate brand.
RE/MAX Regional Services was founded in 1978 by Howard McPherson. The company provides outstanding support to the more than 300 offices and nearly 4,000 agents in its five regions. RRS ensures its real-estate professionals have the leading technology, the most advanced training, and the highest level of expertise to best serve the homebuyers and sellers in their communities.
SOURCE RE/MAX of Southeastern Michigan