A new year is beginning bring with it an outlook on the current housing market and the view is certainly brighter. On balance, 2014 showed the U.S. recovering, being the best economic year since 2009.
With the fast-tracking recovery driving income and job growth, forecasts are better for homeowners and potential buyers. The news is impressive and welcome, as families begin to lessen the reins on spending, boosting the entire economy, and this is encouraging for the return to normalcy in the real estate market.
With these changes, you’re likely to see baby boomers moving in 2015—downsizing to a home that accommodate their family size, as most of their children have grown children of their own.
All of these changes will affect the coming year, and buyers seem to have the upper hand for the first time in a long while.
Below you’ll find the emerging trends for the coming year:
The rapid growth in the US has breathed new life into cities once deemed nine-to-five only. The thought that only lively seaside cities can be active round-the-clock is a thing of the past. Downtown revolutions are combining the key ingredients of the recipe with housing, dining, retail, and around-the-block offices. These urban-produced cores are promoting investment, development, and progress while raising the interest in living in these cities. Consumers and buyers have newer markets to consider with the birth of these 18-hour cities.
Millennials Boost Prices in the Market
The upsurge of the Millennials will aid in boosting prices. As this dominant generation ages, more will begin having children and will need to buy homes. This generation will motivate the market in 2015–marking the first year of the generation’s manifestation in the housing market, particularly in those more affordable areas inside of the South and the Midwest.
Builders Will Become Busy Again
The forecast for 2015 means an over 15 percent growth, motivated by the growth and progress of single-family homes, which is anticipated to increase over 20 percent. But deficiencies of labor and construction material will, unfortunately, limit the product availability to build these single-family homes—keeping the overall resources tight.
2015 will bring an end to the restrictive days felt and seen with the burst of the housing bubble. Already, the market sees major developments in the alignment of sales—namely, fewer instances of foreclosures or short sales.
Experts suggest that 2015 will be the reappearance of normalcy and stability for real estate markets. Prediction is that home value progression will slow down to about three percent annually as opposed to the recent six percent, making real estate less appealing to investors. “Experts also suggest that it’s going to be easier for buyers in 2015. Negotiating influence will transfer back to buyers and move away from the sellers—balancing the market.
Although mortgage rates may not stay at the extraordinary lows previously seen, more individuals may qualify for mortgage loans as foreclosures and short sales decrease and fall off credit reports.