As prices become stronger and regular sales are coming out of the woods, 2014 is predicted to be the year to buy for repeat home buyers at Plantation Bay Golf and Country Club in Ormond Beach, FL. Consumer optimism in home buying has increased and investors are making an exit. 2013 was the year of the investor but as prices increase and mortgage rules tighten, they will no longer be eating up the market. Prices have been rising steadily over the past two years, great for homeowners and those who had been underwater. They are expected to continue to rise in 2014.
As the changes take effect in the mortgage market, it will soon affect different sectors of the market. Investors will have a harder time getting that 3rd, 4th, or 5th mortgage and first time homebuyers will find it harder to qualify. The loan to debt ratio is becoming tighter. This creates a great opportunity for those who have equity in their current home or have been holding onto their savings as a down payment until they can feel out the market. The first time homebuyers will have a harder time getting the FHA loans (which most of them rely on because of the small down payment) as the maximum in Volusia and Flagler Counties has been reduced to $271,050. The tighter debt to loan ratio and lower maximum loan amount will knock a lot of homebuyers off the list of perspective homeowners.
As this isn’t the best real estate market for some, this is great for the average clientele in Plantation Bay Ormond Beach Florida – retirees, soon to be retirees and hardworking couples looking to raise their family in a nice, safe community. With fewer buyers, sellers willing to put their homes on the market because of the rising home prices and extra inventory with new construction it gives those who can afford to buy a great opportunity to purchase the home they want. The mortgage process for these buyers should be smoother as the higher projected mortgage rates will slow down refinancing. This allows mortgage companies to focus on the resale/ new sales and streamline the process.
From all of this news, it looks like another great year in Plantation Bay Ormond Beach Florida for homeowners selling and homebuyers buying. Along with resales, the new construction option-building from scratch or purchasing a spec home, the inventory should be strong in the community and the choices varied.