The housing market in South Florida is definitely on its way up. As the economy improves, the demand for property also increases. But is that necessarily good for the home buyer? Whether you’re in Coral Springs, Plantation, Boca Raton or Delray Beach, there is a noticeable trend in the market. The price of homes is increasing. Many economists are calling 2014 the year of the repeat home buyer.
Despite the increasing prices of property throughout the nation, consumer optimism still remains high. According to a survey by Trulia, 74 percent of Americans still envision home ownership as part of achieving their financial goals. That’s the highest level recorded since 2010. More importantly, 73 percent of young people ages 18-34 who were hit hardest by the housing recession, view home ownership as a part of their goals. If you’re currently a homeowner, this news couldn’t be any better.
But what can consumers expect for 2014? Purchasing a home will be a little more challenging, as housing prices are expected to increase faster than incomes and rents. Mortgage rates are also expected to increase from last year due to the growing economy. If you waited until 2014 to buy a home, you may be having a few regrets. The low rates of 2012 and 2013 are in everyone’s rear view mirror. But the good news is the competition for purchasing new property is expected to be less frenzied. If you’re looking to the near future, 2015 is expected to be a much more promising year. Inventory will increase as a result of more homeowners selling their property. Mortgages will become more attainable because higher rates will reduce refinancing activity. The new mortgage rules of 2014 are designed to provide more clarity to banks about legal and financial risk they face. These rules are expected to prompt more banks to increase their mortgage lending.
The biggest difference between 2014 and last year is the increased presence of repeat home buyers. As home prices increase, investors will buy less. With greater return on their investment and expected price appreciation, repeat buyers are more likely to afford new property. Repeat buyers are less likely to worry about increased housing prices because their home will also increase in value. If you have equity on your current home, you’ll be less likely to worry about a down payment than a first-time home buyer.
When it comes to buying a home in South Florida, nothing is always certain. The housing market is constantly changing. If you’re seeking a mortgage loan, don’t go through the process unprepared. Trust the experienced and knowledgeable team at Ace Mortgage Loan Corporation in Coral Springs. Since 1996, the professionals at Ace Mortgage Loan Corporation have helped countless people throughout South Florida navigate through the mortgage market to help them secure a loan. Broward and Palm Beach Counties are filled with mortgage lenders. Many come and go. When you’re making the biggest investment of your life, you want to place your trust in a company with a proven track record of success. Visit their office today or call (954) 777-4774.