Ventura County Short Sale – What does 2014 hold? Which Way Will The Market Be Headed?

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Real Estate Agent with Allison James Elite CA. BRE 01501699

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By Chris B Johnson Realtor,

While the housing market tends to do especially well when the job market improves and mortgage rates decline simultaneously, that combination of events occurs only rarely…People buy homes when their job and income prospects improve – even if it’s more expensive to do so – rather than buy when it is inexpensive to do so but they’re worried about keeping their jobs.

Therefore, most economists expect an improved job market in 2014, with employment growth accelerating and the unemployment rate continuing to decline. That jobless rate drop will reflect more of a pickup in employment than further declines in the labor force participation rate. This will be the key factor improving housing demand this year, even if mortgage rates rise and affordability declines.

Most Economists agree that the job market will continue to improve and that rising interest rates will not be a detriment to the market in 2014. As Doug Duncan, SVP and chief economist at Fannie Mae, recently revealed:

“Consumers have taken the interest rate rise in stride. Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track.” 

Therefore, 2014 should prove to be the strongest year for housing activity since before the Great Recession.

“If the economy expands at a faster pace this year, bringing a more rapid rate of job creation, that should translate into more households, raising housing demand. We won’t see all three million missing households return to the housing market at once. (That wouldn’t be a good thing for the housing market anyway, since that would be on top of the 1.2 million households that normally would develop this year; such a surge would swamp the existing housing supply). Beginning in 2014, the pace of household formations should accelerate to an above-trend pace for several years, pushing up housing demand.”

The Urban Land Institute recently released a report, Emerging Trends in Real Estate 2014, projecting that 4.48 million new households will be formed over the next three years. Millennials will make up a large portion of these new households. With the economy improving, we believe they will finally be moving out of their parents’ homes and, after they compare renting versus buying, many will choose homeownership.

So Demographics should also start to favor housing activity.

“The rise in mortgage rates already has reduced mortgage origination volumes as refinance activity declines. If mortgage rates rise further this year, as expected, then refinance activity will fall still more. In response, mortgage lenders probably will ease lending standards to the extent possible under the QM rules to boost lending activity by increasing purchase originations. As a result, the increase in new households expected to be created this year, spurred by a stronger job market, should find that qualifying for a mortgage loan will be somewhat easier in 2014 than in prior years.”

As the refinancing market begins to dry up, mortgage entities will be more aggressive in the purchase money market (mortgages necessary to purchase a home). There even seems to be recent evidence that lending standards are actually loosening.

Mortgage availability shouldn’t worsen and may improve.   Credit Article to:Short Sale Solutions 4 Moorpark Thousand Oaks, Simi Valley, Camarillo, Ventura County Call 805-208-0823

If you want an accurate idea of what your home is worth Click Here:

 

You may now have enough EQUITY in your home to sell WITHOUT

having to be “short”. If you are thinking about a short sale I can help

you get an accurate value for your home and get back on your feet.

 

If you would like periodic updates on what is going on in Your Neighborhood

or the Ventura County Real Estate Market, Click on the Links!

 

Thanks for reading this,

 

Chris B Johnson.

Chris B Johnson is a Realtor with Prudential California Realty, Berkshire Hathaway HomeServices .

Phone: 805-208-0823.

email cjohnson@prucalhomes.com.

Certified HAFA Specialist,                                              Certified Short Sale Negotiator.  

Thousand Oaks Market Update                                       Simi Valley Short Sale Trends  

Moorpark Market Update                                                Moorpark Market Trends

Ventura County Mortgage Forgiveness                             Ventura County Buyers vs Sellers

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