Why 2014 Will be a Strong Year for the Housing Market

We’re already four months into 2014, and the height of the selling season will soon be upon us. The winter was unusually cold, but we should be seeing more homes listed in the coming weeks. Spring has traditionally been considered that perfect time to list a home. This year in particular, we have a lot to look forward to. Housing activity has been increasing over the past several years, so we can expect the same trend to continue this year.

Increased Housing Activity

This year may be the first year that we see the most housing activity since 2006/2007. There are a few reasons for this. The first is simple. Since the housing bubble, housing activity has slowly picked up, with each year a little better than the last. As long as this trend continues, we can expect to see even better sales in 2014. Additionally, there should be more jobs available, a bigger inventory of homes and competitive housing and interest rates to drive up housing activity.

More Young People Looking to Buy

A second reason why 2014 may be the strongest year yet is because of a basic yet important piece to the puzzle: demographics. On average, there are 1.2 million households each year that demand a housing unit, whether that housing unit be rented or bought. Due to the recession, there are more young people living at home with their parents for financial security. Many of these young people want the freedom of living independently, though, and will soon be ready to purchase a home. When demand from young people starts to kick in, we can expect to see real progress in the housing market.

Mortgage Availability is Improving

Lastly, mortgage availability may improve in 2014. While it’s not as easy to get a mortgage as it was during the housing boom, it is becoming easier than in years directly following the boom. For those deserving of a mortgage, there are a number of options available through Fannie Mae, Freddie Mac, FHA and VA loans. Also, with rising interest rates, it’s to be expected that fewer people will refinance their mortgages, so lenders will be looking to boost activity by giving out new loans.

Source: HousingWire.com