Friday, May 9, 2014

Favorable home-buying season is here & now!

So far, 2014 has been very positive for the housing market and for the overall economy. Steady increases in home prices and home sales are indicating a continuous trend of strong buyer and seller confidence. The outlook towards real estate is improving quarter by quarter and we are expecting it to stay this way for the upcoming months and years. According to Fannie Mae’s April 2014 National Survey, “for the third month straight, the share of respondents who believe now is a good time to sell a home increased and hit 42%, an all-time survey high.”

One of the other factors feeding the economic upturn is the low mortgage delinquency rate. TransUnion’s latest mortgage report states that in the first quarter of 2014, the rate fell to 3.61% which is a 24% decrease in comparison to last year, and it is now exactly at the same level as it was in the second quarter of 2008. It’s encouraging to see mortgage delinquencies drop once again, especially during a period when mortgage originations slowed considerably,” said Steve Chaouki, head of financial services for TransUnion. This turnaround is mainly caused by the combination of more conservative approach in underwriting mortgages and improved cooperation between the lenders and their clients.

Moreover, Fannie Mae’s National Survey found out that buyers and sellers concern about losing their current job has been the lowest since 2010. Furthermore, 69% of all respondents agree that now is a great time to buy a home and 42% believe that selling now would be the right choice. “These results are in line with our expectations for increased housing activity and gradual strengthening of the housing market going into the spring and summer season,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

Here in the Sunshine State, we are excited about all this great news. We truly believe that we are now heading into enhanced prosperity. Especially here in the greater Tampa Bay area, median prices for homes are below national averages, and our wonderful climate year round and internationally known attractions make Tampa a very desirable to place to live.