It’s amazing how time has a way of transforming even the bleakest of circumstances. A very short time ago the real estate market was in total upheaval and the lending industry had fallen flat on its face.
Doom and gloom were the order of the day. Thanks to sharper lender practices and an improving economy, the real estate market is not only on its way back, but most experts are asserting that the housing market is in full recovery.
Factors that come into play
The real estate market is highly responsive to a number of variables that affects its ability to stabilize. The economy has to at least be on the men, if not stable itself.
Also, the lending environment has to be conducive to reasonable and consistent access for aspiring home buyers. According to the Voice of the Valley, a community newspaper that serves the eastern suburbs of the Seattle metro area, spring is the start of the most active selling season in the real estate industry.
Elevated sales activity should continue through mid-June. The report by Gil Sandoval also stated that current inventory is slightly lower than it should be at this point in the season.
Recent climb in home prices expected to slow
Low inventory levels have served to drive up home prices over the last couple of years, but the trend is predicted to slow down significantly this year.
Inventory levels are starting to rise, which will reinforce the tapering of price increases. According to the U.S. Department of Housing and Urban Development, the market is improving across the board. The monthly scorecard issued by the department for February supports the supposition that housing inventory will rise in the coming months.
HUD also verified that new home sales took a jump after the turn of the year. The preceding two months had seen declines, but in January the largest unit sales pace occurred since mid 2008. The HUD report said prices appear to be stabilizing, which supports expert predictions for 2014.
More positive assessments
A recent article in Forbes said that prices are climbing as quickly as they had before the real estate market collapse. The report accented the positive side of the leap in prices, which are indicative of market health.
One of the primary benefits of the home price hike is that many homeowners will see their home equity shift back into positive values. Homeowners who were “underwater” can breathe again. The report also agrees that sales are moving upward.
As the market continues to look up, top local real estate agencies, such as The Stanaland Group, are in a great position to provide clients with excellent referrals. All the variables are leaning in a positive direction, and an expected rise in interest rates should encourage lenders to loosen requirements for home buyers.
Overall, the real estate market is in a good state, and all the indicators point to even better conditions as the year rolls out. This is a great time to buy and sell, and the perfect time to grow.