Here is some interesting insight into predictions for the 2015 Housing Market.
Up, Down, Where is it Now? The percentage of distressed properties in the market are lower. For the most part, inventory is up, the median list price of homes on the market are fluctuating, and there is still a great deal of interest in the US Real Estate market around the world. Flash sales aren’t as common, but they are still occurring, as well. So, Is real estate a good deal in 2015, or not?
The 2014 market slowed from that of 2013 when the market was in an incredible upswing with as much as a double digit year over year increases in some markets. In 2014, while relatively stable market, the market, in many areas, slowed to a normal single digit price growth while in others prices dropped below market values. Interest rates remained below the forecasts for 2014; and, for 2015, the market forecasts are for it to continue to maintain a “normal” condition.
2015 housing market inventories have increased; construction is at its highest since 2008- another positive for the housing marketing, helping to increase market values. There is also less competition among investors and cash buyers and slower appreciation. All of which, start the year off with higher confidence in the US real estate market.
We won’t see the flash sales and the market spirit like that of 2013 when market frenzy leading to double digits occurred, but we will see a stabilized market. C.A.R. has projected that single family home sales will increase by 2015 5.8 percent. The median price of homes is also projected to rise 5.2 percent and interest rates on 30-year term mortgages will increase, averaging out at an expected 4.5 percent. With a 3 percentage point drop expected in 2015, housing affordability will be at 27 percent. This suggests that there will be less affordable housing. With historically low mortgage rates, higher housing inventory and price stabilization, inventory is expected to prop the market this 2015.
For the 2015 housing market, expert’s predictions include:
- Prices will rise more slowly
- Affordability will worsen
- The buying frenzy will fade
- Affordability will worsen
- Mortgage rates will rise
- Millennials overtake Gen X as home buyers
- Rent increases will outpace home value growth
The National Association of Realtors expects sales of existing homes, (previously owned), to be less than that of 2013.
According to David Blitzer, chairman of Standard and Poor’s Index, four trends to watch for in 2015 include:
- Housing prices will rise at a slower pace
- Affordable housing will decrease
- The buying frenzy will decrease
- Mortgage interest rates will increase
Please contact Julie Ellis Lovett for more information on the US real estate market predictions for 2015 and your Westside real estate inquiries.
