Categorized | Residential

Real Estate Market May Surge in 2nd Quarter

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The second quarter is typically the prime real estate season. The weather typically gets warmer, and landscapes are in full bloom. It’s a time when most people go out in search of a new home to buy. The question that many are asking this year, however, is whether or not the residential real estate market will show significant growth, or will it stagnate or even decline.

 

Many economists are optimistic in their expectations for the second quarter. Mortgage rates are still hovering around all-time low levels. Prices, too, are far lower than they were before the housing market crashed. With more foreclosures expected, there are most certainly bargains to be had. In fact, many economists and retails believe that there has never been a better time to buy than now.

 

However, economists also warn that there are some factors that could potentially prevent any potential growth from taking place. While the number of mortgage applications has increased in recent weeks, lending standards remain very tight. Lenders are still being very cautious in who they approve for mortgages. Tough lending standards have led to housing contracts being cancelled or delayed, as those who would have once been approved with no questions asked are unable to secure a mortgage loan in the current market.

 

Low appraisals may also play a role in holding back the residential real estate market. Sellers that are underwater are unable to sell their price for the current value of their mortgage loan, which is causing a number of potential deals to go awry.

 

While there is a good chance that the market will surge in the second quarter, it will certainly need some help from the government.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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