I can’t believe it is already 2014. You know what they say, “Time flies when you’re having fun.” And we had a lot of fun in 2013. Our market is seeing strong signs of recovery, just like the overall economy. The number of sales in the Tulsa area were up 8.9% and our inventory is coming down. It dropped a total of 17% from the end of 2012. Prices are slowly recovering as well and should continue for the near and distant future. As I have mentioned before, Real Estate cycles are generally 8 to 12 years in length. We bottomed out in 2011 and started to recover in 2012 and should continue appreciating at a steady rate for the next decade or so unless the sky falls. Most analysts are saying this will be a fantastic year for the Real Estate experts that understand the market and for both buyers and sellers.
Year of the Millennial Buyers
2014 is also being labeled the move up buyer year and the millennial year. For the last 5-6 years, we have had many sellers that could not sell without bringing money to the closing table. There is a lot of pent up demand and the recovery should stimulate lots of moving. The millennial, those born after approximately 1980 are reported to be 90 million strong. They have also been waiting for the economy and Real Estate market to recover. They are ready to buy.
Ready for a Seller’s Market?
As inventory continues to shrink and buyer demand continues to rise, we will move into a strong seller’s market. Rents will increase as well because of the decline in our normal new construction starts during the bust.
Effect of Interest Rates
Interest rates are predicted to go above 5% this year but that should not affect the recovery. In the past 30 years, we had 4 major interest rate spikes and every single time, values continued to climb. The downside is that it will affect affordability for all of our buyers.
We’re Here To Help
If you need any additional data or general information about the market, don’t hesitate to contact us to determine what is best for you. We are here to educate and communicate so you can make the best decisions for yourself and your family.
Paul Wheeler discusses outlook for 2014 in Tulsa World online newspaper.