Today for our Real Estate graduate call we discussed how fear can be hold back investors from taking action. We discussed the principles of applying positive thinking and action to combat fear and to attract positive experiences in the desire to do well in real estate.
We also discussed issues that relate to the motivation and possibilities of renters across the country to purchase a home of their own this year. Zillow did a study that said that 10% of renters want to buy a home in 2014.
A money.cnn article states “that would translate into 4.2 million first-time buyers, double the number who purchased in 2013.
Even when buyers find deals they can afford, they still may not be able to get a loan. Lenders these days require solid credit scores, well-documented incomes and job histories, as well as substantial down payments, of 20% or more, to qualify for the best mortgage deals.
Home buyers with little cash to put down and less than ideal credit scores can often get mortgages backed by the Federal Housing Administration. But the agency has been hiking its fees and changing the terms on its loans, which has made them less attractive.”
We need to be aware of the indicators that can promote more growth in the economy that effects the real estate market as well. Fortune magazine had an article that states “one number that often gets overlooked is the most critical for our housing sector, and it’s not construction industry employment: It’s the employment number for young adults, the percent of 25- to 34-year-olds who have jobs.
So says Jed Kolko, Trulia’s chief economist and vice president of analytics. The reason is fairly logical, if you’ve been following the headlines: Too many members of this group are still living at home with mom and dad, suppressing the natural household formation cycle. The more of them who move out, the more new households will be formed, and the more homes will be bought or rented. And the more young people are employed, the more likely they are to move out.”
Let’s all work to understand the market better and take action with hope and purpose.
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