According to the New York Post and Washington Post new home sales are expected to rise. With the rates expected to rise upwards to 5% the notes are still much below the past rates of 9% in the 90′s making it a viable option to have new construction as opposed to being stuck in low inventory. This also gives buyers the option of not settling for an inventory of just bank owned or distressed homes that with fixing, upgrading etc. will not bring in the expected value unless everyone has found that diamond in the rough. How often do we all wish and gain for such good fortune?
Redfin and Zillow are expecting that homes will rise in price rise between 3% and 5% in 2014 which was noted in Forbes Magazine in Dec 23, 2013. Opinions hence are consistent. The rise of new senior homes 55+ and over are also selling at a fast pace. I predict that homes offering extended family living to
become very popular and grow as Alzheimer’s continues to rise with the elderly and the care of assisted living has gained upwards in price that is not always affordable according to how high the level of care.
Families are opting for adult day care and building homes to accommodate the space needed for their families to reduce costs. When visiting new builds take a professional Realtor with you especially your first visit to represent your interests as in any other home you would purchase.
Anticipated is our catching up with homes underwater with rising prices. The best news that I have been waiting for and anticipating is the score to qualify for a mortgage is finally being lowered now in most instances (check with individual lending institutions) from 640 to 600. That should have been done awhile back, the industry did not collapse on the credit scores in the first place. But we won’t revisit that painful history again. This should help stimulate the market to bring forth new buyers to help get our economy growing again. With new builds, rising sales, and scores becoming more realistic I think we have a plan that can pay off in future dividends. However, affordability based on income is not keeping pace and will drive people to homes that may be out of state unfortunately. This we will have to monitor as well.
The investors have taken advantage of a market that is now returning back to the traditional sales. Rentals are up due to the loss of homes for so many who faced unfortunate circumstances.
Programs are changing after foreclosure time to repurchase. With the low interest rates however, the price of a home can easily be much less than a rental. Home buying is still an excellent buying decision.