Tuesday, 13 January 2015

Real Estate Outlook 2015: Some Predictions

It’s been an odd year for the housing market. It kicked off with the ‘Polar Vortex,’ blamed for slowing home sales in the early part of the year.

Real estate Expert Jeff Adams supposed 2015 will be the first year the whole nation recovered, with everybody getting back into the game, as well as those who lost their last homes to foreclosure.

The housing market has been shifting out of fast revival and into a more stable stage and here are some predictions to see in housing in 2015.

Housing Prices will Increase More Slowly

Housing price gains slowed dramatically in 2014 and are anticipated to continue on that route in 2015. Easing housing inventory levels and the exit of investors from the market are helping to put the brakes on home price escalation.

Mortgage Interest Charge will Increase

Still, last year economists predicted that mortgage interest charge would hit 5% by the end of 2014—and yet the standard rate for a conventional 30-year, fixed-rate mortgage stood at just 3.93% last week, compared to 4.42% one year earlier.

Rent Increases will Outpace Home Value Growth

In part, these predict is based on demographic factors such as marriage, kids and in part it’s because many of them will still need to save for a down payment. These factors will keep on pushing the demand for multi-family housing and rents will keep rising.

Markets Driven by Basics

In this year the housing market will be driven more by fundamental financial fundamentals–job growth, incomes, and household formation–than by macro-economic factors such as general price crashes.

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