5 Real Estate Trends for 2014
In the market for a new home in 2014?
Townhouses and condominiums at Darley Green have offered a great quality of life for residents since the Montchanin Builders community opened in 2012. Sales have been steady, but we anticipate that 2014 will be a particularly good year, based on a CBS News report of the Urban Land Institute’stop real estate trends for 2014.
Here are five reasons why we believe condos and townhouses in Wilmington DEwill be in high demand this year.
Top real estate trends for this year
1. Trend: “Second-tier cities will lead the recovery next year.”
Investors, developers and builders say they’ll be turning away from big cities like San Francisco, New York City, Chicago and Philadelphia. Instead, they are looking for housing deals in so-called “second-tier” cities like Dallas, Portland, Boston and Wilmington.
Part of the reason is that US government bond rates have risen sharply over the past few months in anticipation of the Fed scaling back its purchase program, causing yields on 10-year government bonds to increase to a two-year high of 2.9 percent. What all this means is that real estate in the core “gateway” cities no longer looks as cheap as it once was, and that the second-tier cities are starting to look like a much better investment.
2. Trend: “The ‘smile investing’ philosophy is back.”
Real estate developers are moving in what has been called a “smile pattern” — that starts in the Northeast (with New York, Massachusetts and Delaware), moves down South (along Florida, Texas and Arizona), and stretches upward to the Northwest (California, Oregon and Washington). What’s missing is any activity in the Midwest.
3. Trend: “The buyer's market is long gone.”
The overall real estate trend is “priced to please sellers” – and disappoint buyers. Those sweet baby foreclosure deals we saw years ago are long gone, inventory has shrunk, and interest rates are set to rise – along with housing prices. However, new construction homes are still surprisingly affordable. Montchanin Builders has created an outstanding reputation based on offering luxury, spaciousness and lifestyle at a reasonable cost, which is why their communities continue to flourish.
4. Trend: “Shadow banking is emerging.”
There is some optimism that lending standards may continue to loosen a bit in the next year. Yet, there is even more enthusiasm in the emerging shadow banking market that is expected to play a larger role in 2014. Rather than going through traditional banks, borrowers will be tapping private funds, wealthy investors and family offices instead. People who are interested in buying condos or townhouses in Wilmington, DE can visit Darley Green’s central office to discuss a wide variety of financing options, including traditional and unconventional loans.
5. Trend: “The suburban is going urban.”
The door has swung shut on the suburban building spree. The truth is – no one wants a long commute to work. More “urban-minded projects located in spots where amenities and public transportation are easily accessible” will be the trend for 2014, says CBS News. Darley Green is one such community.
Affordable townhouses in Wilmington De
We’re just a 20-minute drive from Philadelphia, but we are also within walking distance to Claymont Train Station, the DART Bus Stop, a state-of-the-art library, local schools, as well as a city center of shops, restaurants and recreational facilities.
For more information on maintenance-free townhomes and condominiums at Darley Green, call Community Sales Manager Amy Maluski at 302.655.2600.