According to a recent article released by realtor.com, 2015 will be a promising year for the real estate market.
Here’s a quick review of anticipated market trends:
The Increase of Mortgage Rates. As the economy rebounds from the recession of 2008-2009, the mortgage rates will rise. The forecast shows the 30-year fixed rate will reach 5% by the end of the year. That said, the one-year ARM is expended to rise less, if at all, therefore it is anticipated that buyers may shift into utilizing adjustable rate mortgages and hybrid mortgages instead of fixed.
Bidding Farewell to Foreclosures. The end of the era of foreclosures is anticipated. Fewer foreclosures and short sales should happen…with the pace for foreclosure inventories to be down more than 30% for year-end 2014 numbers.
Strict Mortgage Rules. What isn’t changing, is the set of strict standards for credit reports and ratings by potential home buyers. Loosening guidelines aren’t out of the question, but by and large, the expectation of rigid buying standards should remain.
A New Generation of Home Buyers. The “Millennial” generation (born between 1981 and 2000) are expected to take up more than half of the first-time homebuyers’ market as they get married and start families. It was also said that, in the next five years, more than two-thirds of the household growth will be from this generation.
More New Home Construction. The anticipated growth in new starts is 16%, led largely by single-family homes. One factor in the housing construction boom is the continued shortages of manpower and materials.
If you’re in the market to buy a new home, contact us to discuss how we can help. It would be our pleasure to work with you.
Rowland Title Company 