Since it’s the new year many people in the real estate business are predicting the trends for 2015, so that buyers and fellow realtor know what to look forward to for the year. This year we will see a fair amount of changes from 2014 and some are for the better or for the worse.
1. Technology – One trend that was very popular last year is the use of digital technology for looking for homes, this will definitely be popular this year because of the way technology improves quickly. A lot of home buyers will use their phone, tablet or computer to find homes so that it is more convenient for them and they can view the neighborhood from the comfort of their current home. Because of technology giving us easy access, the way real estate agents handle business will also change since the buyer knows what houses they want to see and they just have the agent handle negotiations and call contractors. Selling homes will also be this way because you could easily take photos of your home and sell it online from sites such as: Zillow,Realtor, Trulia, etc.
2. Mortgage Rates are Up – Since the economy is going up, so is the mortgage rates. That doesn’t mean it’ll be more difficult, the rates are just becoming balanced with the growth of the economy. The rate is predicted to go up from 4 percent to 5, which may not seem much but if you take a closer look it does effect the price reasonably
3. Less Qualification Hassle – Although rates are going up it will be a lot easier for people with regular jobs to afford a home because sellers are going to sell more this year than the last at a reasonable price. Qualifications for buyers will also decrease for foreclosures and short sales if their credit is low. There is also a program where a buyer can pay less than 3 percent for a down payment, which means people will try to purchase more homes.
4. Millennial Generation – People part of millennial generation are able to afford houses too, since they are around the ages of 25-34 which is the average age of first time home buyers. They most likely have a family and a stable job which can cause desire to have their first home quite soon. The average house gross is also predicted to increase for the next five years and the market will soon see the impact of the millennial generation.
5. Builders are in Demand – With people being able to buy more homes, the economy improving and also higher birth rates, there will be a high demand for builders to make houses. Although they may not have enough workers and supplies which will cause the process to not go as fast as it could.
This year seems like an easier year to buy and sell houses and please take in consideration with the economy improving houses will be in higher demand and higher priced. Good luck out there!