The latest Trulia real estate market research indicates the housing market will continue a slow recovery in 2014. They see housing prices continuing to increase but at a slower rate than in 2013. This will likely result in fewer first time buyers and fewer investors. Repeat buyers or home equity borrowers will likely dominate the mortgage market. Trulia already sees a growth trend in urban apartment rentals. They expect to see even more people renting in 2014.
The top three reason would-be buyers have difficulty buying a new home are (1) lack of sufficient savings, (2) no stable job, and (2) a poor credit history. As we learned from the recent economic crisis, those three reasons contributed to the housing bubble that produced the recession and resulted in a glut of housing foreclosures. In addition to new lending regulations taking affect in 2014, Trulia believes mortgage lending will be less frenzied and maybe less risky for lenders.
Other financial experts see another housing bubble growing.
To read the entire Trulia’s report, go to Trulia Trends.