What Real Estate Trends Will We See in 2015?
The housing market has been in recovery mode for the past two years and it appears we can expect the same to continue but at a slightly slower pace. In addition, predictions show the market could swing in favor of the buyer based on a stabilization after the upturn in the years following the bursting of the housing bubble. Brandon Cornett of the Home Buying Institute recently examined the top real estate trends projected for 2015.
Home values are still going to rise but at a slower pace.
According to Cornett, housing market prices and expectations tend to be local. They can rise in some parts of the country and fall in another. He points to the S&P/Case-Shiller Home Price Index as a generality. Based on the index, prices have risen around 5.6% over the last couple of years. What could 2015 look like? Financial firm CoreLogic released their latest findings and the information is positive. They are expecting a rise of 5.7% between July 2014 and July 2015. This stays with real estate trends we’ve seen in the past but slightly slower.
Mortgage rates will stay below 5%.
Says Freddie Mac’s chief economist. He’s predicting a 4.5% average rate for this coming year. According to a company press release, “We expect to see rates rise as the economy strengthens. At the end of 2015, we expect to see the 30-year fixed mortgage around five percent.”
Foreclosures will continue to decline.
TransUnion, a company that provides credit information, is reporting the mortgage delinquency rate to be at 2.51% in 2015. This will be the lowest we’ve seen since the recession began in 2007. “Regulatory requirements and scrutiny, recent home value appreciation and consumers’ prioritization of payments have all changed the landscape of consumer mortgage lending,” says Steve Chaouki, head of financial services for TransUnion.
It will be easier to get a mortgage.
Lenders have been very particular in the recent years, and 2015 will be the first in a while that Freddie Mac and Fannie Mae are lessening qualifications. What does this trend mean for you? Even if your credit isn’t perfect or you have debt, you may still be able to get a loan.
Double digit gains in home value.
These are only expected in California and the Southwest, says the website Zillow who analyzed the data. This lack of double digit gains is good for a buyer. There’s room to be more particular about exactly what you want and the time you take to make a buying decision. This real estate trend is great for a buyer who has recent experience in a market leaning more toward the seller.
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