There are many signs that 2014 might not be the best one for the housing industry. While there are positive outlooks, credit seems more and more difficult to obtain due to tighter credit requirements. The average credit score for home loans was 750 in 2013, which is 50 more than in 2003. Naturally, this means less houses being bought.
Currently, both mortgage activity and new home sales are decreasing. This might be partially due to a bigger problem. Consumers are afraid of getting a rejection on their mortgage application, so many don’t even try to get the credit they need. According to a recent study, 46% of potential homebuyers don’t even apply because of this fear. Younger people are more heavily affected, as many of them don’t own a home at all.