REALTOR.com®’s Top Five Housing Predictions for 2015 –
1. Millennials will drive household formations. Both population and households are increasing and will continue into 2015. Households headed by millennials will see significant growth due to an improving economy. Millennials will also be responsible for 2/3 of household formations over the next 5 years. In addition, next year will add 2.75 million jobs and with this and household formations it will drive the first-time homebuyer’s market.
2.Existing home sales will increase +8%. Most homebuyers believe that rates and prices will continue to rise. The increase in home sales will be similar to 2012, but this time the properties sold will be more normal with less distressed properties. The majority of housing sales in 2015 will be driven by baby boomers preparing for retirement, but millennials will be in there in a big way and will account for 65% of first-time homebuyers. Find out what your home is worth when you CLICK HERE NOW.
3. Home prices will gain +4.5%. Low inventory and more employment opportunities will push home prices up next year. Increasing home prices will make it difficult for first-time buyers to get into the higher-priced markets. Therefore, this activity is expected to be concentrated in markets with strong employment and affordable prices. Find homes for sale when you CLICK HERE NOW.
4. Mortgage rates will end the year at 5%. Mortgage rates will increase in the middle of 2015, as it is expected that the Federal Reserve will be increasing its target rate by 50 basis points. Thirty year, fixed rate mortgages will reach 5 percent by the end of 2015. One year ARMs will rise minimally, which should increase buyer interest in ARM products. Rising interest rates will also push first-time homebuyers to look in less expensive areas.
5. Home affordability will decrease 5-10 percent. Based on increasing home prices and increasing mortgage rates, affordability will decrease 5-10 percent. This decline will be somewhat offset by increasing incomes, which will continue to maintain strong housing affordability overall.
If you are thinking about buying your first home, or selling and moving up to another home, sooner would be better than later. Rates and home prices will be lowest at the beginning of the year. Rates and prices are predictied to rise through 2015.
You can find out what you need to do to be prepared to buy a house or sell a house in Woodbridge VA. Text or call Erick now at 703-677-1120.
Call now to get started with your 2015 home search.
This report is compliments of Realtor.com.
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Exit Realty Associates
8998C Lorton Station Blvd
Lorton, VA 22079
Equal Housing Opportunity
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