The real estate market is one of the most unstable niches in the business world. Every new day, there are listings going up and others taken down depending on the buyers.
Regardless of the marked price, buyers can choose to bid higher or lower depending on the sellers’ preferences. Therefore, it can be quite difficult to pinpoint the changes in this niche. However, below are some of the real estate trends expected in 2015.
More Listings
In the past few years, the amount of houses on sale have become fewer and fewer each month. However, for 2015, there are a few indications that this number might rise.
Since the year started, there have been more houses put up for sale, including new homes. Therefore, home buyers are likely to find more inventory when looking for houses to buy.
Higher Prices
This year, houses have appreciated in value which means that there will be more listings since homeowners are testing the market. However, the prices might not be too high since with too many listings in the market, realtors will have to compete over buyers.
This means that high priced houses might not sell as fast as they would because of the abundance of listings.
Reduced Interest Rates
In 2014, the predictions for mortgage interest rates were above 5%. However, since the start of this year, they have been dwindling and are currently at 4% and even lower. There are no sudden spikes expected in the interest rates. Also, home buyers at the start of the year are likely to receive more favorable rates than those buying houses at the end of the year.
More First Time Home Buyers
Real estate trends 2015 predict that this year, there is a big likelihood of more first time home buyers than yester years. In 2014, there were many restrictions such as loan regulations, credit score regulations and also lack of adequate listings which reduced the number of first home buyers considerably.
Normally, this section of buyers might be as low as 30% especially because of the strict mortgage interest rates. Thanks to the reduced mortgage rates expected in 2015, there are likely to be more first time buyers.
People with steady employment and good credit scores are more likely to invest in buying their first homes this year.
Although the higher prices might deter some people from investing in their first homes, the loan regulations have become more flexible.
Therefore, it’s expected that this year there will be more mortgage approvals and more people will own their first homes. The lower interest rates have also been attributed to more first time home buyers.
More Growth In Unsuspecting Neighborhoods
Most people are on the lookout for both metro and downtown areas because of their convenience. This year, different neighborhoods are likely to experience a growth quite different to what everyone is used to.
Streets and suburbs that were previously neglected are receiving more buyers in this year.
If you’re looking to invest in a new house or sell your house for a profit, these trends in the real estate market should guide you accordingly!