Repeat buyers could take hold of housing market
Posted on Wednesday, December 11, 2013 at 10:03:44 AM
While access to affordable residential financing has the ability to help many different types of buyers, this upcoming year could be heavily geared toward repeat buyers, with those first-timers getting left in the dust.
According to Trulia, rising home prices could become too expensive for both real estate investors and first-time homebuyers. Instead, the market could be perfect for repeat buyers, or those with current properties to sell and convert into additional funds for the next place.
Higher home prices also mean greater selling prices, so those who are looking to move up will have some additional cash to couple with residential financing. Therefore, this demographic will most likely dominate the landscape throughout 2014.
In addition, Trulia explained that the housing market as a whole will be less hectic. There should be more inventory next year, less competition from investment companies and possibly easier mortgage lending standards. All of that equals fewer headaches for buyers.
According to the Associated Press, first-time buyers - especially those in their 20s - aren't buying houses. There are several reasons why, specifically a tight job market and student loan debt. Overall, this segment is staying put, either in college towns waiting for the next opportunity or renting from parents.
This trend has opened up the market to repeat buyers, and those on solid financial ground may take control of the housing sector in 2014.