REAL ESTATE NEWS
March 18, 2014 - written by Keith Betchley
The Home-Purchase Process is less hectic in 2014. 2012 and 2013 home buyers found prices lower and mortgage rates less than in 2014; however the market now is not as frenzied as it was then. 2012 and 2013 was hectic as investors purchased property due to lower property values and the opportunity for price appreciation and a higher return on investment. Heightened investor interest and activity meant that it was more difficult for the first time home buyer to purchase and for existing homeowners to find a new home, as many properties had multiple bidders and many were being gobbled up by investors.
Good news for the 2014 home buyer. Mortgage rates have gone up in 2014 and as a result, there is a decreased level of mortgage refinancing. As a result, many lenders have found themselves considering increased levels of their purchase financing to adapt to the changed market. More property inventory for 2014, increased property valuation (enabling those that were previously underwater to have equity and be able to sell), relatively flat or slower increases in property valuation (resulting in lower levels of investor purchasing) make 2014 a good year for first time home buyer and for repeat buyers to either up-size or downsize.