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Monthly Archives: January 2015

Shift towards buyers’ market inevitable, professionals say

For consumers, keeping track of who should be buying, who should be selling and when to do so can be a real challenge, especially since the start of recession had many people running from the housing industry altogether. Many Americans have been riding a roller coaster of investment advice and potential yields. Up until very recently, many homeowners were encouraged to purchase new, bargain-basement properties in order to convert them into rental units. In some areas of the country, markets experienced double-digit appreciation year-over-year.

But now the market is getting back to more realistic numbers, as the number of foreclosures has decreased to historic lows since 2008, and investors have pulled back from committing to new purchases. Even with all that said, the number of homes on the market is slowly increasing, making it more and more of a buyers’ market.

4 good signs for the real estate market in 2015

As we enter 2015, various factors are combining to make it seem likely that this year will be one of the best in recent memory for the housing market. Finally bouncing back from the 2008 crisis, the market will be full of new growth and movement this year. Here are a few of the things that lead us to feel optimistic that 2015 will be a good year for real estate:

Mortgage applications surge as interest rates fall

This past week has been a huge week for mortgage applications. With average fixed-rate 30 year mortgage rates falling to their lowest levels since May 2013, people in the market for a new home or a refinance are taking notice and taking advantage of the low rates. The surge was also spurred by the federal government announcing that the Federal Housing Administration (FHA) will lower its mortgage insurance premiums for the first time since the 2008 housing crash.

In the greatest weekly increase since November 2008, mortgage and refinance applications increased by 49 percent during the week ending January 9. This week also saw the greatest number of new mortgages since August 2013.