Housing Market Predictions for 2014

Good news! It is predicted that through 2014, existing-home sales are expected to stay on the up and up! 2013 has been a great year full of healthy gains and that momentum looks like it will continue. According to the National Association of Realtors (NAR), existing-home sales have show a 20% cumulative increase over the past two years! Home prices have gained 18% too! “We’ve come off of record high housing affordability conditions in the past year, and are now at a five-year low, but conditions are still the fifth best in the past 40 years,” said Lawrence Yun, chief economist for the NAR. “While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices.” Other issues include limited housing inventories...

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Issues the Housing Market is Currently Facing

Recently, a group of realtors pinpointed the biggest issues that are currently impacting the housing market. These are issues that could have consequences for homeowners, realtors and mortgage professionals alike! Right now, the biggest issue concerns interest rates. Historically, low interest rates have always driven the economy and in turn the real estate markets. Since the rates have increased recently, capitalization rates could also rise. That refers to the ratio between the income produced by an asset and the cost of it. This could lead to investors and homeowners becoming more and more wary of their purchases. Another concern revolves around healthcare. As the population continues to age, there will eventually be a demand for more senior housing. This will have an affect on available...

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Tight Mortgage Requirements Rough on Singles and First-Time Buyers

According to a study by the National Association of Realtors (NAR), there are still some unnecessarily restrictive mortgage lending standards in place that are not allowing some singles and first-time buyers to financially qualify for a home. These tend to have to do with tight credit requirements. Since 1981, NAR has been evaluating the demographics, preferences, motivations and plans of those who have recently bought or sold a home. This data includes only owner-occupants, not investors or vacation homes. “Single home buyers have been suppressed for the past three years by restrictive mortgage lending standards, which favor dual-income households who are more likely to have higher credit scores,” said Lawrence Yun, NAR chief economist. “Not seen in this survey is the elevated level of investors...

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