Tuccillo: What’s ahead for the housing market

Dr. John Tuccillo speaks to Illinois REALTORS® on the housing market.

The steady growth in home sales and home prices that the housing market has seen in 2013 should continue into next year, said Dr. John Tuccillo, a former chief economist for the National Association of REALTORS® and the chief economist for Florida REALTORS® since 2011.

Tuccillo was the keynote speaker Thursday on the final day of the Illinois Association of REALTORS® Fall Conference & Expo in St. Charles, Ill.

In his session, “Housing and the Economy: A First Look at 2014,” he covered the real estate market, the overall economy and the impact each is having on the other.

One piece of advice he had for Illinois REALTORS®: The current housing market has become a great time for homeowners to sell. Sellers are seeing prices climb and higher interest rates are prompting buyers to buy now before rates rise higher.

“This is a slam dunk seller’s market,” Tuccillo said, adding that REALTORS® should put a strong focus on working the listing side of the transaction.

Other takeaways from his session:

  • There are no good markets or bad markets, just real estate markets that you have anticipated or have caught you by surprise. REALTORS® who can anticipate what their local market will do will be ahead of the game. “If you can anticipate where the market is going to go, you win.”
  • Understand your local market. Knowledge of your market is what matters to your bottom line.
  • Consumer confidence is growing, but hasn’t gotten to the point of being overly exuberant. The federal government shutdown, continuing credit restrictions on mortgage financing, and other factors will continue to impact the housing recovery.
  • Mortgage interest rates, while rising in recent months, are still historically low. Expect rates to rise next year.

 

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