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March 07, 2014
Move-up buyerSteadily rising home prices in 2013 helped 3.9 million borrowers rebuild enough equity in their homes to get them back in positive territory on their mortgages this year. According to CoreLogic, home values improved 12% between Jan 2013 and Jan 2014, and in some markets like Las Vegas, parts of California, Phoenix, and Salt Lake, prices have increased more than 20%.  With so many people regaining equity in their home, mobility in the housing market is returning, and 2014 is shaping up to be a great year for the move-up buyer. Here are the key indicators:

Home Values

Many homeowners have been waiting on the sidelines to regain equity in their homes to use toward a down payment on a new home. Whether the reason is the need for more space, a shorter commute, or upgraded floor plan and finishes, there is likely to be some pent up anticipation when the spring real estate season arrives, and these buyers list their current houses and begin the search for something more appropriate for their lifestyle.

Stock Portfolios

After the Global Financial Crisis occurred in 2008, a period of downturns for the stock market led to the loss of millions in consumer wealth. But beginning in 2009, the stock market has made a slow and steady recovery. Today, the Standards and Poor’s Index is at an all time high resulting in U.S. household net worth jumping to a new high at the end of last year.  The overall wealth gain makes consumers feel more comfortable spending and more likely to have alternative down payment funds to tap into for a new home.

Job Security

The national unemployment rate dropped to 6.6% in January, down from a high of 10.2% in 2009. In a recent survey of US consumers, results demonstrated that households are feeling better about the economy and have a more upbeat view about employment. Only 22% were concerned that someone in their household could lose a job or be laid off.  As homeowners become more confident about their long-term financial security, taking on a larger mortgage becomes less of a risk.

If you’re ready to make a move and are interested in purchasingrefinancing, or learning more about mortgage rates, simply fill out our Fast Response form. Our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!

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