It’s always exciting to hear a positive projection for our economy and job market. For those of us who took a major hit to our “retirement” and “savings” plans by losing thousands of dollars of value on our homes, positive real estate news is always welcome. While we can merely made projections based on current industry trends, it seems that some economists are looking at 2014 to be the year of hope, for the real estate market at least.

According to the newest semi-annual survey, conducted by the Urban Land Institute’s Center for Capital Markets and Real Estate, over 30 of the nation’s leading real estate economists and analysts have projected to see a significant increase in prices in 2014.

This survey was conducted in the past month and reflects the forecast for over 20 economic indicators, such as the issuance of commercial mortgage-backed securities, vacancy rates and rents, housing starts, property investment returns and home prices. These factors were used to make year-by-year comparisons from 2009, near the bottom of the U.S. recession through 2014.

The change will occur in 2013, as the national average home price is expected to stop declining by the end of this year, then raise by 2% in 2013. Then in 2014, the increase should land around 3.5%.

Vacancy rates for office, retail and industrial properties are also expected to drop between 1.2 – 3.7% and remain stable at low levels for apartments. This will also cause hotel occupancy rates to rise.

Rents will most likely increase for all property types, with a projected .8% for retail spaces and up to 5% for apartments.

The survey also showed the real gross domestic product (GDP) is expected to rise from 2.5% this year to 3.2% by 2014, which is what will have such a strong affect on the housing market. The nation’s unemployment rate should fall to 8% this year and as low as 6.9% by 2014.

As the economy improves, inflation and interest rates are also expected to increase, which will raise the cost of borrowing for consumers and investors. The inflation expectation, measured by the Consumer Price Index (CPI) is expected to be 2.4% in 2012, 2.8% in 2013 and 3% in 2014, with ten-year treasury rates rising as well.

What does this mean for consumers and investors? If you’re looking to buy Aurora Real Estate in the next few years, this is the best time to capitalize on the low prices and interest rates, especially when you can expect to gain almost instant value in the upcoming years.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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