Homeowners and buyers are keeping a close eye on the economical changes that are taking place around them, with greater observance to the fact that foreclosures are continuing to remain low. Most people on the outside looking in are conscious of the fact that the real estate industry is slowly returning to its normal self, a factor that could be attributed to a variety of different things. Lawsuits for foreclosures may be slightly up for the month of October 2013, but as it relates to the same time last year, the numbers are looking considerably better.
Even though those foreclosures are slightly on the rise, onlookers are convinced that the slower pace is a promising sign of things to come, especially since requests for building permits have also seen an increase. Because of the fact that the numbers have improved, it is easy for someone to ask the question, what changed and is there something for us to look forward to. The fact of the matter is that there is a lot more cash in the market, which means that if mortgages decline, foreclosures will be right behind it.
This also means that buyers can look forward to better opportunities to make improved deals and will not necessarily have to hang around for some special deal to fall into their lap. Mortgage rates will probably be better and even though banks will be keeping a tighter reign on their lending habits, the buyer will have more to work with when they see something they like. This is certainly not the time to hold back from house hunting, unless you want to continue to pay rent for the rest of your life.
One of the major reasons why the housing industry went the way that it did was because of loans that were not properly secured, with that experience under their belts, banks are no longer prepared to take chances with their loans. Naturally these precautions are slowing things down a bit, but rather than encourage a repeat of the crash, lenders are doing whatever it takes to protect themselves. Economists are forecasting that the increase in home buying and building should be up by almost 5% by the end of the year, which is good news for anyone in the business.
Another reason why there could be greater activity in the real estate industry is because the interest rates are historically low, which means that it may never be lower again. These interest rates are a powerful incentive for those wanting to become homeowners without the higher mortgage payments that come along with it. In some cases, if a loan is not accessible, buyers may choose to get cash from other sources to make their dreams come true, which is another reason why we are seeing such an improvement.
With a strong winter predicted to be on the horizon, there is enough optimism to go around and with that optimism comes interested buyers. Even with the recent shut down by the federal government, buyers are still thinking good thoughts. Positive numbers on Wall Street may suggest that our country's economy is improving. The real estate industry has continually taken its cue from the street and this seems to be what they are doing today. It is time to focus on the light at the end of the tunnel.
About the author: Adam Clarke is a real estate and investment expert who writes about property markets and investments on a number of blogs and is passionate about helping people find the dream property they can afford.