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...
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...
Denver Metro Market Statistics – November

Denver Metro Market Statistics – November

Denver real estate statistics have been released for November, and once again low inventory continues to drive the local housing market, making for a competitive market with prices rising moderately month to month. Read more about the numbers and percentages outlined on our RE/MAX of Cherry Creek blog post, and contact me to find out more about what these numbers mean to...

Getting the Most from your Home Appraisal

If you are looking to refinance or take out a loan, a home appraisal is extremely important as it will help determine the amount of the loan you can get. Even if it seems to be a standardized process, there are certain things you can do to get the most out of the appraisal, and this RE/MAX of Cherry Creek blog post outlines some tried and true...
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