2014 Home Buyer Forecast!
My 2014 Forecast For Potential Home Buyers: You Can Buy A Home This Year!
Mortgage rates are getting higher but NOT drastically so.
There’s no reason to panic! Buying a home will be somewhat more expensive but not to the point of being unaffordable.
Historical context is important when looking at today’s rates. A little over a decade ago, the lowest average rate for a 30-year fixed rate mortgage was around 5.25%.
Rates have increased since their drastic fall following the housing crash, but are still lower than the early 2000’s. If we do start to see 5% rates appearing in 2014, they are still absolutely favorable to buyers.
Housing inventory is on the rise.
Nationwide home values have soared over the last year, marking a 7 year high.
New-home construction has picked up in the last few months and is expected to ramp up more. This will help lift supply. According to the Commerce Department, new housing was up 30% last year.
On top of that, more homeowners will likely sell this year to capitalize on rising home values, contributing to an inventory boost.
There will be less competition from investors.
Real estate investors were notoriously greedy during the housing crash. They snatched up cheap properties and elbowed out individual home buyers before they knew what hit them.
That competition from investors will die down now that the market is recovering, thus making way for the individual home buyer to get in on the action.
Last year was the year of the investor, but 2014 will be the year of the repeat home buyer.
Contact me with any questions. Consultations are always free.