The 2014 market predictions are rolling in slowly, but surely. Here's the latest:
Speaking at the National Association of Realtors annual conference, Lawrence Yun, the trade group's chief economist, said that home sales will hold steady next year, but prices will continue to rise due to a low supply of homes for sale.
He predicts that median home prices nationwide, which now stand at about $200,000, will increase 6 percent next year after an 11 percent gain this year. He said that with new home construction still far from historic levels, the inventory shortage will not go away.
He also expects that with refinancings falling, lenders might loosen home lending standards to increase originations, and that could increase sales.
We'll know more about the health of the local market on Tuesday morning when the Minneapolis Area Association of Realtors posts its monthly sales report for October. I'll post those numbers on JustListed at 10 a.m. Tuesday. Stay tuned.
- Jim Buchta
