The housing market has been steadily improving since late 2013. Large investors, in particular, were responsible for buying property in bulk and boosting up the real estate market. As the market improves, prices have steadily increased and large investors have now stepped out of the market. Jeff Adams, the #1 real estate trainer, states that small buyers now have the perfect setting to enter the real estate market as investors and buyers.
However, unlike yesteryears, the 2014 real estate market is dramatically different due to the recession, variable real estate pricing, big investors, and differences in the local economy. As a result, buyers and sellers have to watch out for a few things that might impact them while buying or selling their properties in 2014.
Large Investors will Move out of the Market
The amount of distressed properties has decreased. As properties decrease, prices have increased and this has resulted in investors scaling back their purchases. However, this has opened up the market for buyers and sellers. As a result, small buyers have a better chance of finding affordable properties in any city.
Banks are Loosening their Lending Standards
Banks went super-strict on their lending after the 2009 recession. In fact, it became downright impossible for small buyers to get loans for anything. Times have changed though as banks have now relaxed their credit standards to encourage buyers.
The average credit score for mortgages in August 2014 was 727. This was still high but industry watchers have pointed out that the number has been steadily decreasing since late 2013. Lenders will also try to attract borrowers to take loans to increase cash flow and this may lower the credit standards even more.
Second Tier Cities are more Popular
Large investment groups have already snapped up properties in first tier cities like New York City and Washington DC. As a result, second tier cities are now open for investment. Both new and distressed properties are available and they are much more affordable for small buyers.
New Houses will Increase
As the construction market improves, new houses will be open for purchase. As a result, buyers will have more inventories to choose from and this will boost the market even more. A steady growth of 1.7% is expected to continue over 2014-2015.
Real estate investor, Jeff Adams states that buying property at present is a good idea. The market is open, mortgages are low, and properties are available for purchase. For sellers too, this is a good time. If you want cash right away, you should think about selling. However, if you can wait, property rates are expected to increase even more and you will get a better rate as 2014 comes to an end.
Be warned though, that buyers are only willing to purchase affordable properties and prices far above market rate will not move quickly. Although it is a seller’s market, buyers are conservative and will not overpay. As a result, buyers and sellers have balanced out the real estate investment market for sale and purchase.
