4 Reasons Why Homebuyers Can Breathe a Sigh of Relief

There’s been a dramatic change in the housing market lately, and it’s almost all good news for homebuyers. As we head into summer, here are a few thoughts to consider:

Homes_For_Sale_2014

  • There are more homes for sale in 2014, with inventory up 9 percent. Sellers are working harder to get their homes fixed up, so some of these places look pretty good.
  • And you have a better chance of being able to buy one, with bidding wars down by double digits.
  • More good news, prices have stopped going up so quickly.  We predict prices to increase by just 6 percent in 2014, making it much easier for you to find a good deal on a home than when prices surged by 13 percent last year.
  • And mortgage rates are at 4.1 percent, less than half the 30-year historical average of 8.7 percent; for a $500,000 house, this is worth more than $500 a month in mortgage payments.

What Redfin Agents are seeing is homebuyers who have become more disciplined than before, still pouncing on the A+ homes in the best school districts, but being more careful with the up-and-comers.

If you haven’t been on Redfin much in 2014, it’s just a whole new market. Check out homes for sale in your favorite neighborhood.

And if you have your own take on the market, leave a comment below.

Discussion

  • http://nononsenselandlord.com/ No Nonsense Landlord

    It is definitely becoming a buyers market. Financing is still tough, and cash buyers rule. But as more homes become above water, more homes come on the market. This will keep prices from rising too fast.

  • http://batman-news.com/ ak123

    Get ready for some surprises in the housing market. Things look okay for now mostly because, surprisingly, interest rates have dropped 40 basis points over the last six months, making homes seem 5% more affordable. The bloat in the stock market has also given people a false sense of security and encouraged them to take on more debt. Watch for the next financial shock, which will come sooner or later, and what it does to this fragile and weakly glued together housing “recovery.”

  • http://www.solutionsforagents.com/ Mike Smith

    Very interesting and true information!