This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

What to Expect for Housing in 2014

Yun points also to tighter inventories (meaning a less-than adequate number of homes for sale) and "stringent" mortgage lending standards as big reasons the housing market should see slower growth (but not a decline) next year.

Higher interest rates could already be threatening home sales leading into 2014, as they could dilute interest among homebuyers. Yun is also wary of higher fees and tougher regulation.

Here is what Yun sees in the near future:

  • Home sales will nearly match 2013 levels, at 5.1 million existing homes sold. That means zero growth, basically, compared with the 10% growth seen this year.
  • Home prices will rise by 6%, compared with a 12% rise last year.
  • Mortgage rates, now at 4.16%, will climb to 5.4% within the next dozen month.
  • New home sales will rise from 429,000 this year to 508,000.
  • The inflation rate will rise 2.7%, and could reach up to 6% in 2015.

That's a pretty conservative outlook coming from an economist who usually casts a brighter glow on the U.S. real estate market.

But at least the housing sector isn't falling into decline, and if the economy continues to improve, Americans may well shrug off higher rates and tighter inventories and dive into the market next year anyway.

After all, families still have babies, employees still get promoted and transferred and older Americans still want to buy those homes near palm trees and golf courses.

In a tough year, that may be enough to keep the U.S. real estate market in "plus" territory -- but not by much, if Yun has his numbers right.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.46 -0.63%
FB $83.26 0.30%
GOOG $549.92 -0.95%
TSLA $184.09 -3.30%
YHOO $45.21 1.70%


DOW 17,684.87 +6.64 0.04%
S&P 500 2,058.00 +1.85 0.09%
NASDAQ 4,878.0930 +14.7310 0.30%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs