It’s the new year again, and with that new year, it is time
to look forward to 2015 to speculate how the year will turn out. Realtor.com
has just released their top predictions for the housing market in 2015, and
building upon what we saw in 2014, housing is expected to continue to grow
slowly but steadily as it has.
2014 was the first year we saw true recovery form the
housing market crash we saw nearly a decade ago. With steady job growth and
increases to the national GDP, the housing market saw its first steady pickup
in years. Realtor.com expects that trend to grow throughout the next year.
The top predications for the housing market are centered
around pre-existing home sales and the millennial generation. Households have
shown improved growth and at higher pace than it has been the past few years.
Researchers expect a massive move of the younger generations out of parents’
homes, college dorms, etc. into houses since they can no finally afford to (the
majority of which they expect to go into the pre-existing homes.) Millennials
might have money to now move out, but not build a home.
Home prices are expected to increase this year as well. Not
as many homes are expected to be built. Rather, they will be bought. Lower
inventories will push prices higher. Mortgage rates are expected to start going
up mid-year and end the year at 5%. This, however, is expected to push overall
home affordability down. Experts are hopeful a continued increase in worker
wage will help offset that downside.
Overall, the housing market looks like it will still be in
recovery mode for the majority of 2015. Still, the markets show vast
improvement from where they were years ago. We will continue to monitor the
markets and hopefully we can all make 2015 the year housing came back!
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