Real estate has come such a long way that most of those who bought houses back in the 70’s are now wondering what changed. Real estate did not just drastically change. It has changed gradually and the year 2013 has also seen its share of real estate changes. The eight top ways in which real estate has changed in this year of 2013 are discussed below.
- Homes are much more affordable. There were times when buying a house looked like such a big deal but not this year. Due to the much improved economy and the fact that the interest rates of mortgages have been lowered, many people are now able to easily afford nice homes. There are however, some parts where housing rates will increase by some minimal value.
- The second way in which real estate has changed in the year 2013 is that loans have become much pricier. In the year 2012, the loan rates were at their record low and this year started by seeing the rates rise. Some of the experts in this field, like Greg McBride, have said that the rates might linger between 3.5% and 4%.
- The inventory has also bottomed out this year. This simply means that even though the rates for buying houses are very good, not that many houses are on sale this year. This presents a big challenge since not very many people are benefiting from the low rates.
- The presence of a new mortgage rule has also changed the housing market for the year 2013. This rule protects the buyers from the lenders. The ability to repay rule was passed by the Consumer Financial Protection Bureau.
- The year also saw the comeback of the home-equity loans. These loans are normally low in interest and are useful to those that are looking to remodel their houses.
- There are fewer distressed home bargains to buy. The cheap foreclosure deals are being kicked to the curb and even though there are still many distressed homes, they are not getting much attention.
- There is also new construction coming in the year 2013. At this point and time, it is true that there are very few homes. However, there are plans to build more houses this year.
- The luxury market has also suffered a hangover this year. In the last year, most sellers made their properties luxury homes in order to get more profit. However, this will not apply this year.