The pace has slowed down for the recovery
of the housing market, especially from what it was in 2013. Economists weigh in
on why this is occurring and what to expect for the rest of 2014.
One economist from Freddie Mac gave an
interview with HousingWire and said that the improvement in the housing market
has been flat with lower demand for home purchases early this summer. Of
course, it is expected to pick up with numbers looking better over the summer.
At the same time, it is expected to have a slower pace than what was seen last
year at the same time. Economists expect the numbers to continue to be below
what was seen in 2013.
An economist with Equifax agreed with the
perception of the current housing market. A weak labor market is impacting the
housing recovery and any sign of stalling is a cause for concern. On the other
hand, almost all of the states are showing improvement from 2013 and no areas
of rapid decline.
Even the Federal Reserve chair Janet Yellen
has said that the housing market has leveled off. Much of this is due to the
rise of mortgage rates. At the same time, other numbers have shown positive
indications. Existing home sales
and new and pending sales have been showing an upswing.
One of the issues that has experts
concerned is the fact that the market is still volatile. One area of the
country may be booming while another area is stagnant. The numbers can even
change between reports. This unpredictability has many analysts concerned.
Another area that has some worried is the
lack of first-time buyers who are purchasing. With tighter lending
requirements, it has left many interested home buyers out of the picture. While
some argue that the change is necessary to prevent future crisis, it has also
had a negative impact on the number of buyers that can qualify.
No matter what economists or other experts
say, the housing market is in a better place than it was. Homes are still
affordable and interest rates are still low. It is still a good time to buy.
No comments:
Post a Comment