The Housing Recovery’s Obstacles – 2014’s Real Estate Trends

The Housing Recovery’s Obstacles – 2014’s Real Estate Trends

There’s no question the real estate industry is continuing its comeback from the 2008 recession. In my previous blog I shared how 2014 allowed the recovery to strengthen. But what about the challenges we faced? Here are the factors that held back the housing market’s progress:   Tighter Standards And Pre-Qualifications In order to limit risks, new overlays were added to mortgage qualifications. More households had a difficult time capitalizing on the historically low mortgage rates. As the range of acceptable FICO scores narrowed, lenders saw their potential population of buyers cut almost in half. Therefore mortgage credit availability did not grow in 2014.   Lighter Supply Of Inventory Supply certainly did not outpace the demand for homes (even though there was an increase in inventory). Year over year we’ve continued to see the monthly supply of new and existing homes remain below normal levels.   Lowest Level Of First-Time Buyers The National Association of Realtors reported the number of first-time buyers dropped to its lowest in over twenty years. “But the first-time buyer share is showing signs of modest improvement by the year-end,” said Lawrence Yun, NAR Chief Economist. New policies were introduced at the end of 2014, such as low down-payment programs and revised regulations for lenders. So analysts expect an increase in first-time buying transactions in 2015.   Higher Rental Prices 2014 had a record-breaking number of more renters, making it an inflationary concern among real estate experts. On a national level it looks like rental prices will continue to rise.   Home Building Remained Low While the demand for home-buying grew, there was barely an increase in...
A Strong Housing Recovery – 2014’s Real Estate Trends

A Strong Housing Recovery – 2014’s Real Estate Trends

Last week we said goodbye to 2014. As our nation finished another chapter, the real estate industry took another step away from the recession of 2008. As we reflect on last year’s trends, there are a number of indicators the housing market is continuing its recovery.   An Improved Economy The GDP picked up steam after our harsh winter at the beginning of 2014. With the strong production of new jobs and growing confidence of consumers, the GDP is still trending higher.   Historically Low Mortgage Rates Despite the end of quantitative easing last year, mortgage rates kept declining. Global issues among financial institutions such as the European Central Bank and Asiakept kept our Federal Reserve from raising the rates.   The Return To Normal Price Appreciation In 2012 and 2013 our national market experienced abnormally high levels of appreciation. This last year home prices increased at a moderate rate (which may signify a consistent, long-term trend).   Distressed Sales Declined Home sales of foreclosures and short sales continued their year-over-year decline. Anticipating 30% less distressed properties for 2014, we can expect this trajectory to continue.   Major Investors Activity Dropped With less distressed sales and higher home prices, single-family homes rentals reached their peak earlier in 2014. Therefore large-scale investor purchases were less involved in the single-family home market. What does this mean for the Denver metro market? While we remain one of the hottest markets in the country, we can be more assured these positive trends will continue.   Be sure to read my blog about the housing recovery’s obstacles. If you’re considering buying or selling, feel free to...

Denver in Another List for Top Real Estate Markets

It is no surprise to any realtor here in Denver that we have one of the top real estate markets in the country. Homes can go under contract in a few days after multiple offers and above asking price. The market is hot, and we’re thrilled to be a part of it. We’re right alongside cities like San Francisco and Austin since we all have a lot of millennials moving to our area plus growing tech and energy industries. Read more about the study in this RE/MAX of Cherry Creek blog...

Neighborhood Guide: West Highland

West Highland is only 1.1 square mile, but within that small area you can find a huge variety of shops, restaurants and beautiful homes, and a perfect spot to stroll around. 32nd Avenue has experienced a lot of change and updates in recent years, with fabulous coffee shops like Cork & Coffee, new restaurants like the acclaimed Brazen, and established (and unique!) landmarks like the Denver Puppet Theater. 5280 outlines a wide range of activities to keep you busy in their Neighborhood Guide, so head over to this historic part of Denver and spend the day browsing, eating and shopping your way...
Insights Email Newsletter: December

Insights Email Newsletter: December

Click below to read my latest Insights Newsletter to read more about what’s going on in real estate and home lifestyle news. Featured articles this month include what makes the best neighborhoods, why people love the Nest thermostat, and how to improve the bottom line on your home appraisal. Access more articles by clicking on the image. Want to sign up to receive my newsletter each month? Contact me to be added to the...

The Cost of Denver Real Estate

Many of our country’s cities are growing more and more with their strong economies and ample job opportunities, and Denver is right there near the top of the list. Our city has so much to offer both the young and old, and it’s hard not to notice the increasing population which has brought a lot of wonderful diversity and progression to our area. However, there is a downside to this situation because home prices tend to rise, making affordability an issue for residents. We’ve seen real estate prices grow, and demand for housing is at an all-time high, and for some buyers and sellers this type of market can be extremely confusing and overwhelming. Be confident that you can get in touch with me to help you navigate and achieve top dollar for selling and negotiate the appropriate value for buying. Read more in this article, and don’t hesitate to contact me with any...
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