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 contact me with your questions or requests.