11 Reasons the Real Estate Market Will Turnaround in 2014

Since the peak of the market several years ago a lot has changed and real estate may be poised for a solid recovery in 2014.  Here’s 11 reasons 2014 might be a good year for  Real Estate!

  1. Median home price is around $150,000 while the median home price for the US is $217k.  This makes real estate more affordable than many other areas which is attractive to companies moving here.
  2. We currently have high unemployment of a skilled work force.  Although high unemployment isn’t a good thing it is again attractive to business who are considering moving.
  3. The cost of owning a home is now on par with cost to rent a home.  Why rent when you can own for the same price?
  4. Inventory of homes has been consistently falling and we are now at about the same inventory we had in 2006.
  5. We have 9 months inventory down from a peak of 19 months in October 2008.
  6. High Speed rail is coming connecting Toronto and Oshawa.  This will create new jobs and make Toronto the first city to have high speed rail in Canada.
  7. Interest Rates should remain at or near all time lows.
  8. Banks are finally lending again and you can now get loans of up $417,000 with as little as 5% down.  Last year you needed 20% down.  This opens up the buying pool to a lot more people.
  9. This election year is almost over and all the negativity of endless political commercials will end.  The constant shock words like “unemployment”, “Recession”, “Real Estate Crash” heard on radio and TV will end.  This will help the psycheof the public’s perception.
  10. The stock market has rebounded with the Dow solidly above 11,000.  With people’s account values up they start to loosen the purse strings a bit which not only directly affects real estate purchases but also affects the economy and unemployment as people spend more.
  11. Investors are back!  The difference between these investors and the one’s who got us into this mess is these investors are much more conservative and they are mostly cash buyers.  Investors are necessary for a healthy market as they pick up foreclosures and “fixer uppers” and add value to those homes and neighborhoods.