Monday, October 14, 2013
The housing market recovery is ready to outburst in 2014 and 2015
The year 2013 has been a very positive year when it comes to the recovery of the housing market. We have followed the rising prices of homes, increase in newly build constructions sold, homebuilders regaining trust and increasing the inventory, and we also witnessed people who went through a bankruptcy rejoining the housing market after rebuilding their credit. It is obvious that we still have work to do in order to reach the country’s potential but analysts agree on the fact that we are heading towards a bright future. According to David Crowe, chief economist for National Association of Home Builders, “the cards are in play for a decent and fairly strong recovery in 2014 and particularly in 2015.”
What does this mean for people who have real estate needs but are not sure if it is the right time to enter the housing market? With a better inventory and more options on the market and with stricter but also more secured mortgage loans, the customers will realize that the market conditions are very positive and steady and that there are no signs of a bubble being created like we have experienced several years ago. NAHB is expecting the single-family production to rise by 17% next year and 31% by the end of 2015. In addition, by the end of next two years, we are expecting the housing recovery to reach 93% of normal. SI Real Estate has an experienced team of professionals who keep up with the newest market trends so we can secure you the best rates no matter if you are trying to buy, invest or rent properties in the greater Tampa Bay area.
On the way to the full recovery, there will be obstacles such the government shutdown or running out of cash to pay its bills. However, Mark Zandi, chief economist at Moody’s Analytics believes that “lawmakers will get it together because the private economy has done a marvelous job of reducing leverage and getting their balance sheets in order. American companies are in a very good shape and they will do well going forward, with continued strong export growth which will be a strong source for economic growth for a long time to come.
What about the state of Florida and the real estate market conditions? Florida and especially the Tampa Bay area were hit hard when the bubble burst. If we compare Florida with the state of Texas, the number of mortgages is roughly the same. However, Florida had five times as many foreclosures during the crisis and today it has less than double. According to Robert Dank, NAHB’s assistant vice president for forecasting and analysis, “now that a new stage of healing process begun, local conditions are dictating the pace of the recovery and that is why bubble states like Florida are no longer on the bottom and have moved ahead of states in the industrial Midwest.” It is more than obvious that Florida is getting back to normal really fast and with the business leadership and commitment, the entire state will get back on the top of the real estate market once again.
Here at SI Real Estate, we have experienced the highs and the lows in the greater Tampa Bay market and thanks to our clients who appreciate diligent and honest work; we have managed to stay profitable and retain loyal customers during the tough times. When you talk to an SI agent, you are not only talking to a real estate professional but you are also talking to someone who sets your satisfaction as the highest priority. We will work with you no matter what your needs are and we will always represent you with respect and dignity because our customers are our best advertisement. We are a group of real people who delivers real results for our clients.