Housing has made definite progress the last couple years, but there remain pitfalls on the long, winding road to recovery.
Mortgage rates remain at record lows; home sales, though down from 2013’s highs, are still miles ahead of the doldrums in past markets; negative equity and foreclosures are both a shadow of what they once were; and the economy, slowly but surely, is improving.
Yes, there are many reasons to be optimistic for 2015’s housing market, but we’d be amiss if we gave off the impression that it will be a smooth, easy road to recovery from here on out; so, with that in mind, here are three developments that could give housing some problems, as it slouches towards normalcy:
1. MIA Investors – Arguably the biggest reason for 2013’s soaring housing market was the presence of deep-pocketed real estate investors, who purchased thousands upon thousands of properties across the country with the distinct purpose of rehabbing those properties and then renting them out.
Last year, though, investors largely took a back seat – both rising home prices and rising mortgage rates taking a bit out of their returns – and home sales suffered as a result. Indeed, investors accounted for just 15 percent of transactions in Nov. 2014, down from 20 percent at the start of 2014, and sales for homes priced $100,000 and less fell 16 percent year-over-year in November.
This development is not entirely bad – after all, if there is less investor activity, then that probably means that our housing inventory is becoming healthier – but at the same time, there remain millions of delinquent homes and foreclosures in desperate need of buyers, and if investors are not around to purchase those properties, then the recovery could drag on for a bit longer.
2. Weak Income Growth – The nation’s unemployment rate may be falling, but American’s wages are growing at a pitifully slow rate; in other words, incomes are not rising at the rate that will allow more consumers to purchase homes.
We sometimes forget how costly purchasing a home truly is. Even with a lower down payment, the various closing and moving/furbishing costs are extensive, and given that Millennial wages are falling and millions of Americans remain stuck in part-time jobs, the economic climate is simply not conducive to more home sales.
And perhaps the most troubling stat of all came from a Federal Reserve report last fall, which not only found that 57 percent of Americans who had savings prior to 2008 used up some or all of their savings following the recession, but also, that only 48 percent of Americans can cover an emergency $400 expense without either selling something or borrowing. If more than half of Americans need to sell possessions or borrow to cover $400, how could they manage a down payment on a house, even at just 3 percent?
3. Rising Mortgage Rates – We may be starting 2015 with more record-low mortgage rates, but there’s a very good chance that the Federal Reserve will increase interest rates some time this year to stave off any chance of inflation.
Though analysts normally overstate the impact of incremental rate increases, sudden spikes can wreak havoc on the marketplace – a fact that the summer of 2013 made abundantly clear.
I simply want to say I am just all new to weblog and absolutely liked you’re website. Likely I’m planning to bookmark your site . You actually have wonderful posts. Thanks a bunch for revealing your blog.
I would like to thnkx for the efforts you’ve put in writing this blog. I am hoping the same high-grade web site post from you in the upcoming as well. Actually your creative writing abilities has encouraged me to get my own blog now. Actually the blogging is spreading its wings rapidly. Your write up is a good example of it.
These are in fact enormous ideas in regarding blogging. You have touched some pleasant factors here. Any way keep up wrinting.|
I’m just commenting to make you know of the impressive experience my friend’s princess experienced viewing the blog. She learned many things, which include what it is like to have a marvelous helping style to get most people easily completely grasp several multifaceted things. You truly exceeded my desires. I appreciate you for rendering those warm and helpful, dependable, explanatory as well as fun tips on your topic to Julie.
Thank you for every other informative website. Where else may I get that type of info written in such an ideal approach? I have a venture that I am just now working on, and I have been on the glance out for such information.
As a Newbie, I am permanently browsing online for articles that can help me. Thank you
Wonderful beat ! I wish to apprentice while you amend your web site, how could i subscribe for a blog web site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear concept
Wow, amazing blog layout! How lengthy have you ever been running a blog for? you made blogging look easy. The full glance of your web site is great, let alone the content material!
I¡¦ve learn some good stuff here. Certainly worth bookmarking for revisiting. I wonder how much attempt you place to create the sort of wonderful informative site.
Thank you for the sensible critique. Me & my neighbor were just preparing to do a little research on this. We got a grab a book from our local library but I think I learned more from this post. I am very glad to see such great information being shared freely out there.
I am continually browsing online for posts that can assist me. Thanks!
Hello. excellent job. I did not anticipate this. This is a remarkable story. Thanks!
Wow, marvelous blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is magnificent, let alone the content!
Fantastic beat ! I would like to apprentice while you amend your website, how could i subscribe for a blog web site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear idea
I was just searching for this info for a while. After six hours of continuous Googleing, finally I got it in your web site. I wonder what is the lack of Google strategy that don’t rank this type of informative sites in top of the list. Normally the top web sites are full of garbage.
hi!,I really like your writing very so much! share we be in contact extra approximately your article on AOL? I need an expert in this house to resolve my problem. May be that’s you! Taking a look forward to look you.
I would like to thnkx for the efforts you’ve put in writing this blog. I’m hoping the same high-grade blog post from you in the upcoming also. Actually your creative writing abilities has inspired me to get my own website now. Actually the blogging is spreading its wings quickly. Your write up is a great example of it.
Hello, you used to write magnificent, but the last several posts have been kinda boring¡K I miss your tremendous writings. Past several posts are just a bit out of track! come on!
I simply couldn’t depart your website prior to suggesting that I actually enjoyed the standard info an individual supply for your guests? Is going to be back ceaselessly to inspect new posts
You actually make it seem so easy with your presentation but I to find this topic to be actually something that I believe I might never understand. It seems too complicated and very huge for me. I’m having a look ahead for your next put up, I¡¦ll try to get the hold of it!
Hiya, I am really glad I have found this info. Today bloggers publish only about gossips and internet and this is actually frustrating. A good blog with interesting content, that is what I need. Thanks for keeping this website, I’ll be visiting it. Do you do newsletters? Can not find it.
I’m so happy to read this. This is the type of manual that needs to be given and not the random misinformation that’s at the other blogs. Appreciate your sharing this greatest doc.
Fantastic goods from you, man. I’ve understand your stuff previous to and you are just extremely fantastic. I really like what you have acquired here, certainly like what you are stating and the way in which you say it. You make it entertaining and you still care for to keep it sensible. I can not wait to read much more from you. This is actually a great site.
Well I definitely enjoyed studying it. This information procured by you is very useful for proper planning.
I have read several just right stuff here. Certainly worth bookmarking for revisiting. I wonder how a lot effort you place to make one of these excellent informative web site.
Whats Happening i am new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I am hoping to give a contribution & assist different users like its aided me. Great job.
Hi, i think that i saw you visited my blog so i came to “return the favor”.I am trying to find things to enhance my website!I suppose its ok to use some of your ideas!!
We are a group of volunteers and starting a new scheme in our community. Your site offered us with valuable info to work on. You’ve done an impressive job and our entire community will be thankful to you.
It’s perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you some interesting things or advice. Maybe you can write next articles referring to this article. I wish to read even more things about it!
You made some good points there. I did a search on the subject and found most persons will consent with your website.
that’s good, thanks for sharing,.. I think this is great blog
that’s good, thanks for sharing,.. I think this is great blog
I enjoy, cause I discovered just what I was having a look for. You have ended my 4 day lengthy hunt! God Bless you man. Have a great day. Bye
Thank you for the sensible critique. Me & my neighbor were just preparing to do a little research about this. We got a grab a book from our local library but I think I learned more from this post. I’m very glad to see such excellent info being shared freely out there.
You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complex and extremely broad for me. I am looking forward for your next post, I will try to get the hang of it!
Magnificent goods from you, man. I have understand your stuff previous to and you are just too magnificent. I really like what you have acquired here, really like what you are stating and the way in which you say it. You make it enjoyable and you still take care of to keep it smart. I cant wait to read far more from you. This is really a terrific web site.
This is very interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your fantastic post. Also, I have shared your website in my social networks!
As I web-site possessor I believe the content material here is rattling fantastic , appreciate it for your hard work. You should keep it up forever! Good Luck.
You made several nice points there. I did a search on the matter and found most people will have the same opinion with your blog.
As a Newbie, I am constantly searching online for articles that can aid me. Thank you
I have been exploring for a little bit for any high quality articles or blog posts in this sort of area . Exploring in Yahoo I ultimately stumbled upon this web site. Reading this info So i am satisfied to convey that I have an incredibly just right uncanny feeling I came upon exactly what I needed. I most certainly will make sure to don¡¦t forget this site and provides it a look regularly.
Attractive section of content. I just stumbled upon your site and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Anyway I will be subscribing to your augment and even I achievement you access consistently quickly.
Good site! I really love how it is easy on my eyes and the data are well written. I am wondering how I might be notified whenever a new post has been made. I’ve subscribed to your RSS which must do the trick! Have a great day!
great points altogether, you just gained a emblem new reader. What would you recommend about your submit that you made a few days in the past? Any certain?
hello!,I really like your writing very much! share we keep up a correspondence more approximately your post on AOL? I require an expert in this house to resolve my problem. Maybe that is you! Taking a look forward to see you.
It’s perfect time to make some plans for the future and it’s time to be happy. I have read this post and if I could I want to suggest you some interesting things or suggestions. Perhaps you could write next articles referring to this article. I wish to read even more things about it!
I carry on listening to the news bulletin speak about receiving boundless online grant applications so I have been looking around for the finest site to get one. Could you tell me please, where could i get some?
I am not sure where you are getting your info, but great topic. I needs to spend some time learning much more or understanding more. Thanks for wonderful info I was looking for this info for my mission.
Nice read, I just passed this onto a friend who was doing a little research on that. And he just bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch!
Magnificent beat ! I would like to apprentice while you amend your website, how can i subscribe for a blog web site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea
Hello there, You’ve done a great job. I will certainly digg it and personally suggest to my friends. I’m confident they’ll be benefited from this website.
I just could not go away your site before suggesting that I actually loved the usual information a person supply on your guests? Is going to be back steadily in order to check up on new posts
great issues altogether, you just received a brand new reader. What might you suggest in regards to your put up that you simply made some days in the past? Any sure?
that’s good, thanks for sharing,.. I think this is great blog
that’s good, thanks for sharing,.. I think this is great blog