2014 Real estate forecasts reveal promising signs of moderate growth and increased stability to the real estate economy. Home buyers, borrowers and sellers in every location will benefit from this positive outlook. Since the pace is moderate and deliberate, it is not very noticeable to those who are not playing an active role as a buyer or seller of real estate.
Slow and Steady Rise in Confidence
After so many years of uncertainty and loss, a slow and steady recovery is reassuring. This pace provides time to plan and adjust. The growing faith in the real estate market will become stronger and more enduring as spring and summer approach. Although some areas showed double digit price increases in 2013, these increases were in the areas that suffered the greatest losses of value. The high increases were corrections. Buyers can breathe easier because home price increases have slowed which will allow time to shop and get qualified using the new loan standards.
A Good Year to Buy
For those who are prepared and motivated to buy a home, 2014 is a good year to buy in any price range. The financial side of the real estate industry has embraced a commitment of responsibility and professionalism to the American consumer. Mortgage companies have spent the recent months becoming trained to assist and coach buyers in obtaining government guaranteed loans that will serve the home buyer well. Home financing will be clearly understood and terms will guarantee long term benefit and stability. The staff at Prospect Mortgage is completely updated and prepared to serve the financing needs of the 2014 home buyer.
2014 Home Buyers
The economy has strengthened enough to get boomerang kids back out of their parent’s homes. Rents are higher and vacancies are lower which will encourage those who have the ability to buy homes. The slimmer pickings for rental homes will encourage some renters to evaluate home ownership after they discover that buying is actually cheaper than renting in 2014. Buyers who are moving up and also acting as sellers will be very active in 2014.
Availability
More homes will be available because new construction is more prolific and fewer existing homes are underwater which gives homeowners who have been stuck an opportunity to sell. The extremely low sales prices and interest rates are coming to an end which means home buyers will not have to compete with investors.
Financing
New qualified mortgage rules give lenders and Realtors more guidelines and confidence in government backed financing. The housing industry is responding well to the new rules and consistent lending standards which is a good thing for borrowers and is giving the loan industry renewed confidence which boosts activity even more.
Overall
Home prices and mortgage rates will move up slowly as the recovery process is completed which will happen in the middle of 2015. 2014 promises a nice combination of reasonable home prices and access to decent financing.