Although real estate markets tend to ebb and flow from one year to the next, 2014 was one of the strongest years in recent history. There is every reason to believe, from the current indicators, that the trend will continue throughout 2015. Whether you are buying a home or selling one, the market in 2015 will be on your side.
- There is a larger inventory of homes for sale.
All signs point to more homes going up for sale in 2015 which will add an abundance of new inventory to the real estate market. Although winter is normally a slow time of year for real estate, there are new listings being added every day which indicates an even stronger spring and summer housing market.
- Home values will continue rising.
Because homes are appreciating in value, more homes will go on the market. Not all of these home owners will plan to sell. Some may just plan to test the market to see how much equity they have regained in their homes. Prices will not jump too high, however, because more inventory means competing with a lot of other listings to make a sale.
- Interest rates will stay reasonable.
Early into 2014 experts predicted that interest rates would be on the rise. Right now they are still hovering at about where they were at that time, and some have even decreased. Even if interest rates do go up in 2015, they will remain favorable for buyers, who should not expect to see any sudden spikes throughout the year.
- The market is first-time homebuyer friendly.
During past years, first-time homebuyers were discouraged from entering the market. This was due to everything from a lack of affordable homes to tighter restrictions on loans and bigger down payment requirements. Recent announcements of 3 percent down payment programs will help many who have never owned a home before, though.
- Gas prices will affect the real estate market.
This will be a small influence but when it comes to real estate, every little bit helps. The lower gas prices will make homeowners feel more secure about the equity they have in their home in 2015, and encourage them to feel more comfortable about making a large purchase – like putting their existing home on the market and buying a new one.
In summary, all signs point to a better overall real estate market for 2015. With lenders agreeing to work with people who do not have the traditional 5% down and extending credit using reasonable terms, more people than ever will have an opportunity that was not afforded to them in the past.