What’s Happened in Housing in 2014

Every day, we’re conducting free housing counseling for foreclosure prevention, pre-purchase and first-time home buyer education, reverse mortgages, and more. We’re listening to what homeowners and consumers have to say, and keeping up with the most current trends in housing. 2014 brings special concerns as a soft housing market recovers very slowly.

What we’ve seen in regards to housing in 2014:

  • New mortgages are down. Credit is tight, rates are going up, and fewer people have access to mortgage loans now than at any time over the past decade. Home prices have recovered a bit, but incomes have not, so people cannot afford homes or qualify for loans under current regulations.
  • Student loan debt is hurting housing. An entire generation of potential homeowners is facing tremendous student loan debt. This large debt is preventing them from becoming homeowners, even if they want to buy. For now, the millennial generation is stuck in renter-only mode.
  • Affordable housing sales are down. Sales of lower-to-mid priced homes are down, for similar reasons to the slump in new mortgages; people are simply working less and earning less money than prior to the recession. These homes are also heavily reliant on Fannie Mae and Freddie Mac for financing, so new purchases and loans are subject to extra regulation that makes home sales harder to negotiate.
  • Prices are up. Home prices are up, even while sales are down; higher  value homes in particular have gone up in value. A large percentage of home buying right now is done by investors and large institutions, tying into the first two points above; there are fewer first-time home buyers now than any time in recent memory.

We’re here to help anyone who is struggling with homeownership. Whether it’s protecting your home from foreclosure, becoming a new homeowner, or preparing for a HELOC Rate Reset, we have free, on-demand counseling that can help. Call us today.