Hi All! Its FALL (well almost, I know a few of you are thinking... NO TCG, its Not... Well, I know the 23rd is- But lets pretend like we are in 5th grade math class... and ROUND UP)
Since the year is FLYING past us, I thought I would discuss our housing market, predictions etc.. for the season and not inundate you with product details :) Also, a few REALLY helpful links on moving tips for your clients. (OR OUR CLIENTS :)
According to Forbes.com * http://www.forbes.com/sites/erincarlyle/2013/12/23/housing-outlook-2014-10-predictions-from-the-experts/
Inventory and Rates:
We will experience more homes in inventory for potential buyers, rates potentially rising (which I know is a big worry for most- but is necessary to improve the economical position of the country.)
But rates will not skyrocket- Still a LOW for the US average history: quoting "2008 the 36 year average was 9.2% and never below 5.8%,"- Glen Kelman CEO of Redfin.
Obtaining a Mortgage and Prices for Homes:
With all of these changes will bring more competition between banks, rates rise- and refinance will dwindle which in turn loosens guidelines for banks to allow for more leniency through the purchase process. Zillow and Redfin predict that home prices will rise between 3-5% in 2014- while national average in 2013 was 5%.
Home Outlook, Affordability and Ownership Overview:
Rising home prices helped 2.5 million homeowners with underwater mortgages regain positive equity status during the second quarter of 2013. In 2013 by Q3 6.4 million were still in negative equity status but expected to shrink through 2014. As mortgage rates rise and the slow pace of rate increases it is predicted that affordability will decline. Since income isn't following the housing trend and not keeping pace with the housing market. Ownership rates in turn will decline as Zillow predicts in 2014, with children moving from their parents home (and not always buying but renting) as well as during the recession the housing market proved unsustainable with 7 out of 10 in a home- we are looking at challenges for growth prior to growing.
Americans and Moving, Foreclosure Outlook, Home Buying Process At EASE
The good news about all of this? We as Americans will still move and still buy homes, but this go around our approach will be a little more cautious. We will focus on more affordable areas *trending predictions for cities: Portland, Denver, Austin, Richmond, Dallas, Houston, San Antonio, Atlanta, and Raleigh.- Redfin* they'll choose smaller homes and be a little more educated about what to look for security. The foreclosure market is reducing significantly roughly 33% down from 2012 and the declines should continue as the housing market recovers. Qualification is looking up with increased inventory and fewer foreclosures - the housing market now beginning to look more normal. A quote from Trulia about this outlook:
“All in all, more inventory, less competition from investors, and more mortgage credit should all make the buying process less frenzied than in 2013,” says Kolko of Trulia
Applicable Quote:
"Exploration is the engine that drives innovation. Innovation drives economic growth. So let's all go exploring."
Edith Widder
Theresa Crowell Green- The Green Team
