CHATTANOOGA, Tennessee(WDEF) - Paying for food and shelter is something every adult must do throughout his or her life and in 2014, the cost for both is expected to increase.
WDEF caught up with Melissa and Joe Kreidel just one day after the couple purchased their North Chattanooga Home. The two recently relocated to the Scenic City from Montana. They were looking for a home before the New Year when home prices were expected to increase.
"We originally didn't find anything on the market. The inventory was pretty low and then we found this house and said we needed to make a move on this pretty quick because we knew interest rates were going up from here," Joe Kreidel said.
Economist expect home prices to increase between three and five percent in the New Year. The cost increase centers around demand versus what's actually available. Demand is expected to come from people who have been forced to rent apartments for the past several years but are now in a position to buy a home.
"And now some of those rental contracts have expired. People are getting comfortable with the area and they know geographically which area they're interested in," said Keller Williams Realtor Kay Provonsha.
Food prices are also expected to increase in 2014.
According to the USDA, consumers can expect to pay up to 3.5% more for food.
"I'd rather not pay for more food if I don't have to," said one customer outside a North Chattanooga grocery store.
"I'm just thankful to have money to be able to afford groceries," said another customer.
Economist say we can all expect to see an increase on the price of poultry, produce and dairy products.
"Milk has been expensive and I have two daughters at home that go through a gallon a day so I'm not looking forward to that. I understand the way the rain was this year and that farmer prices will probably go up," said shopper Bill Chimley as he loaded his vehicle with groceries.
So whether you're trolling the food aisles at the local grocery store or planning to purchase a home, expect to shell out more cash in 2014.