Housing market trends and real estate predictions for 2015

2015 is almost upon us and as real estate agents and potential buyers and sellers look toward the future, we see some trends emerging and we can make certain predictions about what we will see in the market over the next year. Many experts see that we will finally be returning to a stable housing market as over the last 2 to 3 years the economy has gained and the housing market has stabilized. These imbalanced real estate markets offer home value growth and a steady climb at 3% per year instead of the 6% that we've seen over the last two years. Because of this, it can make real estate less attractive to many investors however, first-time homebuyers now see a good chance to enter into the real estate market.Housing market trends and real estate predictions for 2015.

Investor activity is shrinking over time because investors like to go with buy low and sell high. Because the market is slowly stabilizing and home values are not increasing at a more rapid rate, this means a first-time homebuyers now have a chance to get in on a good deal and keep that home, gaining value over a longer period of time.

Speaking of first-time homebuyers, we will see an increase in the millennial's purchasing homes this next year. There's been a considerable rise in the amount of younger people who are now looking to lead a stable life and to do so starts with purchasing a home. Because of this there will be an increase in the demand for properties that fit their search criteria and price. Lower mortgage rates may also increase the demand. Just about every year mortgage rates fall by the end of the year and 2015 will also see a drop in rates. Rates tend to go high in the summer and spring and then decrease more towards the end of the year. This is natural and we will see the same trends in 2015.

According to a recent article by commercial real estate show.com, the "18 hour city comes of age". Many fast cities have been known as "24-hour cities" where people can live, work, play and walk all within a certain distance to every amenity that they need. But now, more people are looking for the 18 hour city which is a more affordable metro area attracting employers and millennial's. This is also considered a form of urbanization were smaller cities will revitalize and create a more main stream area for retirees, families and younger couples.

 

Technology will create a love-hate relationship with most buyers and sellers. Yes, we are in a digital world where everything is literally at our fingertips but people might be having a struggle dealing with the technology side versus real people. Also, the increase of telecommuting is having a significant impact on the houses people are buying. Because more people can work for home there looking for office space and more room in the home or separated areas which also could blend is a multigenerational homes. "Funding is coming to real estate, and you will see capital aggregated in a brand-new way. New legislation is only beginning to impact how investors raise funds." [Source]

As rates go up we will also see more of a close to the foreclosure crisis. There simply won't be that many short sales and foreclosures on the market any longer. Millennials will be moving up, credit will be a big factor and more first time home buyers will finally emerge. 

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