Here’s a story from MSN.com the talks about the rising prices of homes. Story points out the whole home prices will rise in 2014 but at a slower pace than historical trends. Which in my opinion is a great thing.
The slow pace in my opinion is attributed to the lending availability. Lending is still very tight and regulated so buyers have to go through a montage of paperwork in order to buy homes. The good news there is that people still need to buy homes to live in. I was talking to gentleman this week that I moved here from Texas and purchased a home in Solon Ohio. His company transferred him to a new job position here and he had to move.
This is why it’s great to invest in the city that has many many different companies coming into the job market. Cleveland Ohio metro area is one of those markets where there are a lot of companies coming in and creating jobs .As I said before we see a large increase in commercial real estate purchasing. In fact Banks are lending 75% loan to value on commercial real estate. This shows there confidence in this area.
Almost all the real estate markets are still far away from the prices in 2005 and 2006 but they are rising and there is room for them to rise. As a lending continues to get better and it will you will see the pressure on the inventory and prices will rise. Even with the interest rates changing 57% of America pays cash for there homes now. There are a lot of foreign and domestic cash investment buyers in this market eating up the current inventory The banks are encouraging investors to be in this market because of their strict lending policies.
Great news this year though I believe the banks lending will be losing their policies so that people can get mortgages and get their own personal residence. Which is great news for the real state investor who is buying now.
So as you can see 2014 looks like a great year for real estate both buying and selling. I can’t wait to see what this year brings. Brett Young