Spring, the prime season for real estate exchange, is upon us! Buyers are searching for a great purchase, and sellers are hoping for offers. But what does the current Spring 2014 real estate market look like? Is it conducive to profitable real estate activity?
The answer is yes!
Reports indicate the housing market recovery across the nation is a reality! The Real Estate Market’s return to it’s former glory is still underway, and the statistics are improving.
State of the Real Estate Market in 2014
Prices Are Still On The Rise
Last year, we saw prices rise as home buyers competed with investors with heavy money, during a time when the bank’s supply of foreclosed homes were running low. While this year’s home prices aren’t rising at quite as steep of a rate, they are, inevitably, climbing higher.
Rising Prices Generate a Positive Impact on the Market
Many would ask, “Aren’t rising prices a bad thing for home buyers?” The answer is, “Not really.” The investors have begun to retreat as the dollar signs became larger, leaving more space for would-be buyers to enter the market.
Also, with spring being the prime-time sales season, sellers are coming out of the woodwork, creating a larger seller’s market. The resulting increase in competition will hopefully keep options plentiful and prices affordable. In essence, this spring’s real estate market is good for both parties of buyers and sellers.
Greg McBride, chief financial analyst at Bankrate.com, says that “Things are moving in the right direction,” and that the rising home prices “will entice would-be sellers, but a more modest pace of home price appreciation will keep buyers active.”
Increasing Mortgage Interest Rates Slow the Market’s Pace
While the housing market remains on a healthy trajectory, the heightened activity the market experienced last year has slowed its pace. This has been attributed to a rise in mortgage rates that, combined with a continued rise in home prices, have made buyers more cautious and sensitive to risk.
A Boost from Young American Homeowners
There has been a rise in potential homeowners—young Americans who are ready to move out of their parent’s homes and start a life of their own. According to Daren Blomquist, vice president of RealtyTrac, 2014 will see an increase in the first-time buyer market segment. As these homeowners filter out of the woodwork, increased demand will make for a healthier market.
Overall, our housing market is doing well. More homeowners are joining our ranks, prices are rising, homes are appreciating, creating prime market conditions for both sellers and buyers alike. For more information about our property management services for owners, feel free to contact North Pacific Property Management.