More Dynamic Housing Markets in Cities Experiencing Economic Growth

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The property prices in the United States are expected to increase in 2014 as the economy is recovering and the demand for housing increases. Some 5.14 million homes are expected to be sold during the year while 5.07 were sold in 2013. The price increase is projected to be the highest in cities with economic growth where the number of jobs rises.

In 2014, the cities experiencing the highest economic growth will have the highest housing prices. These areas will offer more and better paid jobs and this will define the higher demand. As the demand for housing increases, prices will be pushed up. This is the current trend and it is expected to remain.

In contrast, in 2013 the markets with highest prices were the ones which were the most attractive to investors. Investors rather than home buyers pushed prices up in areas which offered good property deals and good jobs. As the economy is recovering this trend is not as strong. Now more people prefer to owe a home rather than to pay rent.

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At present Fort Worth is the area with highest estimated job growth for 2014, 2.7%. There the property prices are expected to increase by 8.9% during the year. In Baltimore and Tampa the number of jobs is projected to increase by 2.4% and 2.4% respectively. The corresponding property price increase is estimated to be 8%.

The higher rate of price increase is attributed not only to the higher demand, but to the shrinking inventory as well. In Fort Worth, where the biggest boom is expected, currently there is a supply of homes for just three months. For comparison, nationwide the supply is for five months. The number of days during which a property is on the market will decrease considerably and this is a clear indicator of the falling inventory.

Home buyers in areas with fast economic growth can expect mortgages which require 10% to 15% down payment and which have interest rate between 4.4% and 5.3%.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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