A new article from Reuters highlights some of the factors at work in favor of home buyers this year, especially those who want to trade up to a larger home.
New single-family housing starts are at a high since 2008, according to the Commerce Department’s latest report. Fewer homeowners are renting out their homes to delay selling them, down to 35% in 2014 from 39% in 2013, according to Redfin. And more consumers have positive equity. Last spring, 19% of homeowners in Redfin markets (such as Atlanta and Philadelphia) had low or negative equity. That was down to 11% in November. Nela Richardson, Redfin’s chief economist, expects it to hit 8 percent by March 2015.
Even better for buyers, interest rates are near-historic lows below 4 percent. “The question of staying versus leaving is shifting. For people who were afraid to leave their mortgage because they thought it was the best they’re ever going to get, now there is another good mortgage around the corner,” Richardson says.
