2014 Predictions

by Stephanie Sims

Agent in the Industry

On the agent side, will the number of agents increase, now that the market has evened out? 

NSBAR had a 4.7 percent increase in members since April of this year, and sees it trending up next year; the Mainstreet Organization of Realtors (MORe) is anticipating approximately 1,400 new members this year, about a 20 percent increase from last year, and is also seeing an increase in new licensees, although at a slower rate than in years past.

• “According to the National Association of Realtors’ most recent member profile, the age of the average Realtor increased in 2012 to 57 years, from 56. Median years of experience of members also increased to 13 years, from 11 years. While there are new members entering the profession, there is also a decline in members leaving the industry.” –Michael Parent, MORe; Coldwell Banker Residential Brokerage


With inventory tight this year, we saw multiple offer situations and potential sellers debating whether or not to sell. In 2014, our experts’ predictions veered toward a more balanced market, because fewer sellers will be underwater, and with strong buyer demand and historically low interest rates, sellers will finally get off the fence and want to take advantage of the equity they’ve acquired. Buyers are still looking for value, and will continue to do so next year, but sellers should take advantage of buyer demand.


How will inventory move next year? What will the buyer and seller markets be like?

• “This is interesting, because as usual, if inventory is low next year like it’s been, it will still be a difficult process for buyers, with more multiple offers. Home prices are up from last Oct. to this Oct. by 12.8 percent. If prices continue to rise, which they will continue to do if it’s a limited market next year, this will allow sellers to add more inventory and even out the market. Most sellers are going to sell and buy again, and this goes back to affordability for next year, and how it will still be a great time to buy.” –Chuck Goro, Coldwell Banker Residential Brokerage

• “I think how things are priced is still key in moving inventory. Even if inventory stays low, I think properties still need to be priced properly to sell. Buyers are still looking for value. I think inventory will be similar to this year, where it affected sellers in a good way. I think sales values will remain consistent through next year, so we won’t have much more inventory. This recovery is a thoughtful recovery. People are weighing all their options and waiting to see what will happen.” –Lynn Kosner, Baird & Warner

• Next year, Millennials will move out of their parents’ homes, and even empty nesters will move, too. “Now they feel the time is right to make the move. Demographics show that the first-time buyers will continue to be strong; this past year showed strong signs of improvement. These different segments of the marketplace, along with an improving transferee market, should combine to create a strong real estate market for 2014.” –Honore Frumentino, Prudential Rubloff


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