In our most recent blog, we published our first four trends for 2013. Although our focus was for home financing, these trends are also indicative of some 2013 overall financial trends. Now we bring you our final Six Major Trends, creating a total collection of Ten Major 2013 Trends for our V.I.P.s, the home seekers.
Trend Number 5. You Won’t Find A Bargain Tag: Owners’ Good News is Buyers’ Bad News! Do not expect to obtain a discount store style bargain by grabbing someone’s big foreclosure bargain. There is a good reason that this is fading away. Below, we paraphrase the explanation given by Philip Feder, chair of real estate practice at global law firm Paul Hastings.
The Federal Housing Finance Agency (FHFA), the Federal Deposit Insurance Corporation, and banks have sold hundreds of home loans in bulk to loan purchasers on the condition that they negotiate new payments for the loan holders, instead of foreclosing.
Trend Number 6. You Might Find A Short Sale: You probably know short sales are special deals “in which a home sells for less than what the borrower owes on the mortgage.” In such cases, the bank agrees to accept the sale instead of going through the expensive foreclosure process.
Thus, according to some experts, while foreclosure sales will keep falling, the number of short sales might increase. You can investigate this by reading Polyana da Costa’s commentaries; she is senior mortgage analyst at Bankrate.com.
Trend Number 7. Your Dream Home Will Cost More To Build: This trend is common sense. During the housing crisis, many homebuilders moved on to other businesses. Basic building supplies are more expensive than they ever have been.
“The latest drop in existing home sales is good news for home builders. Sales of existing homes unexpectedly fell 1.0% in December, but the drop may be more a matter of tight supplies rather than weak housing demand.” As our wounded economy continues to heal, we feel we will see “more buyers, facing fewer choices of older homes, will decide to purchase a new home, creating work for builders.”
Trend Number 8. You Might Choose Property Management: There are many rental oportunities due to the investors who participated in the number 5 trend listed above. Property Management has become a great, booming career field.
Trend Number 9. You are going To See Rising Mortgage Interest Rates: Here is a trend agreed upon by almost everyone. “The NAR predicts that rates will gradually rise to average 4 percent next year, up from about 3.5 percent in September of this year.”
Trend Number 10. Welcome to Our Best Trend: Palm State Mortgage agrees that your low interest rates have been so low recently, there is no way they could go any direction except up. In the same way we feel there will still be good houses to hunt, we think there will be value-conscious loans for us to find, as your mortgage company.
The bottom line is we are finding interest rates and loans to put people in homes and keep them there. Every day. This is a trend will plan to continue in 2013, and beyond. That is because, you, the house hunter, the business planning seeker, the real estate searcher, you are our V.I.P.s!
