There is a lot of optimism in the media about real estate. It is refreshing after the last several years of negative press and all the pessimism surrounding real estate. Here is some of the positive news about the market:
- The number of people that are delinquent in their mortgage payments are down so as a result, short sales and foreclosures are less prevalent in the market.
- With less distressed inventory, prices are increasing giving many people equity in their homes. Many people may not be aware of their position in relation to their home’s value
- Fewer foreclosures results in less crime – fewer people are stealing appliances, HVAC units, cabinets, lighting, etc. from the foreclosed properties and there aren’t as many people squatting
- Inventory is low as buyers are in the market purchasing properties
- Sellers, in many cases are seeing multiple offers on their houses
- Interest rates remain below 4%
- Consumer confidence is up
- New home sales are up
- Builder confidence is up
- The rental market is strong and will continue to increase which is good for investors
- As the real estate market improves, so does the overall economy
It is great to see us getting out of the weeds but there is still a lot of work ahead of us. Sequestration and the resulting budget cuts will impact thousands of people – how will this impact the housing recovery. Lending guidelines continue to tighten and the cost of obtaining a mortgage is rising – will this prevent too many people from entering the housing market? Appraisals are often times coming in low because of escalating house prices with multiple offers and low supply – will this prevent too many sales from happening?
As a professional Realtor, committed to our clients, we can help you with providing you with the right advice to help you navigate the real estate market. Feel free to call us with any questions.
Scott MacDonald (703) 652-5777