How the Government Affects the Housing Market Today

2013 has been a great year in the real estate market as compared to the last five years previously but it’s facing a slowdown, some would say over government dysfunction. Validity over the next debt ceiling debate, the shutdown, and the economic and housing market overall is all affecting real estate as we head into 2014. Mortgage rates are probably the best they’re going to get over the next year or two and according to realtor.com, Freddie Mac estimates that 30 year fixed loans will hover around 4.3% to the end of the year and then rising in early 2014.

According to the US economic and housing market Outlook, the US government shutdown scaled back the growth projections for housing about .5% and foreclosed home sales result in tighter inventories for home buyers. This leaves new buyers fewer homes to choose from and higher prices. The US housing market struggles along with the US economy which is expected to reach full potential sometime in 2015 or later.

Freddie Mac vice president and chief economist Frank Nothaft says that we’re likely to see the housing recovery slow down but not shut down completely. There are take inventories in many markets across the US with rising rates and slumping consumer confidence. But the housing recovery should continue to absorb the economic shocks in stride and improve by next year. [Source]

So what does this mean for local buyers and sellers?

Industry predictors advice sellers to strike while the market is relatively high and sell now before prices and interest rates the two are too many more buyers.

Buyers should have no problem financing if they have decent credit and a little bit of money in the bank. Buyers have great options right now even though the inventory is slightly down. Estimators assumed that there will be too much of a change until prices rise even higher; the best deals are the ones available right now.

For more information on buying or selling in the North Naples real estate market called the offices of Domain Realty. We not only know real estate but we know the market and provide the best service for our buyers, sellers and investors.

Your North Naples Real Estate Team

Domain Realty is your key to smart buying and selling in the North Naples real estate market. We know all the details from the most exclusive communities and subdivisions around the area. Whether you’re looking for a gated golf club community or a luxury waterfront home, we can help you find the right home at the right price or help you sell your North Naples real estate quickly and efficiently. Call us today to learn how we can make you work home buying or selling dreams a reality.