The Economist: What’s Up with the Housing Market in 2014?
From The Economist, March 17, 2014
3 major things you need to know about the 2014 housing market:
No. 1: 2014 should prove to be the strongest year for housing activity since before the Great Recession. For both economic and demographic reasons, 2014 should be the year when activity reaches the highest level since 2006/2007.
No. 2: Demographics should start to favor housing activity. Newly formed households reside somewhere as an independent unit. People double-up when worried about their job and income-earning prospects.
No. 3: Mortgage availability shouldn’t worsen and may improve. Reasons exist for mortgage availability to be no worse in 2014 than in the past few years. Actually, it may be somewhat easier to get a mortgage loan.
In Colorado Springs all three trends will hold true in 2014.
What does this mean to the buyer? It means be prepared for competition. Be prepared to make a strong offer. Be prepared for mortgage interest rates that are a little higher than they were a year or two ago.
1. Colorado Springs Housing Activity is very strong as we begin 2014. I’ve seen and been involved in numerous multiple offer situations in just the first few months of the year. Prices are trending up and will most likely continue to do so. The sooner the better for buyers ready to get into the market.
2. Roommates, young adults living at home with parents, family members moving in together – the Recession led to an increase in all this type of activity. With a recovering job market, we are expanding again into independent living spaces, so the demand for housing is growing.
3. A big swing to liberal lending practices in the bubble, followed by contracted lending in the Recession, we’re now approaching a good equilibrium where folks who should be able to get a mortgage can get one and buy a house. Is this you? If you haven’t talked with a lender lately, we can suggest a few great ones for you to talk to.
Bottom Line: In 2014 sooner is definitely better than later for the buyer.