Dec. 11 - Higher home prices in 2014 will incentivize home owners to sell- and start to boost inventories and home resales, a move away from the investor driven market of 2013. Bobbi Rebell reports.
Bargain hunting in the housing market? Better get moving. Higher mortgage rates- they went up again last week- and an improving economy will make homes less affordable in 2014 according to real estate website Trulia. The good news: There will be more homes to choose from: Trulia's Chief Economist Jed Kolko: SOUNDBITE: JED KOLKO, CHIEF ECONOMIST, TRULIA (ENGLISH) SAYING: "One of the challenges this past year was there was so little inventory on the market but now that prices have risen more owners are thinking about selling their homes, that is going to mean more inventory for people who are looking to buy. So even though they will be more expensive, the process won't be as frenzied." The markets to watch will also change- moving away from markets like Las Vegas and California that were recovering from the steepest crashes- to areas that have strong job growth, are not yet overvalued, and don't have foreclosures as headwinds - cities like Salt Lake City, Utah and Fort Worth, Texas. There will also be big changes in who is buying. SOUNDBITE: JED KOLKO, CHIEF ECONOMIST, TRULIA (ENGLISH) SAYING: "I expect 2014 will be the year of the repeat buyer. People who are- they might be trading up, they might be trading down but they are going to be selling as well as buying. The reason for that is affordability concerns hurt first-timers of course. It makes it harder to afford a new home and they have had a hard time saving for a down payment. Investors also are discouraged by rising prices because the math looks less good for them." Kolko says the math still looks better to buy versus rent in most markets- however, because even creeping higher, rates will still be very low.