At Frankel Realty we are fully aware that the housing market is facing constant change. We make use of our extensive resources and skills to keep a close watch on emerging trends. For 2015, we can make several predictions based on the emerging trends:
The mortgage rates will be increased
According to many real estate analysts, there is a very high possibility in favor of higher mortgage rates in 2015. The average mortgage period is about 30 years for most home buyers. It is predicted that the interest rates on 30 year mortgages will gradually climb and rise up to 5% by the end of 2015.
Millennials will seek to buy more as opposed to renting
For many years, millennials have been renting their properties instead of owning their own homes. It is expected that from next year, a considerably large percentage of millennials will look into building families and seek stability in the form of their own homes. In fact, some real estate experts predict that millennial buyers may represent the larger portion of home buyers by the end of the year 2015. Their housing preferences are often closer to core urban areas and are smaller in size and properties that fulfill these requirements may see some considerable demand next year.
Home prices will gradually rise
Home prices vary at a local level and in some U.S. cities, they will continue to rise through 2015. According to the S&P/Case-Shiller Home Price Index, home prices are headed upward and have been so for a while. According to the latest Case-Shiller report, nationwide house prices have risen about 5.6% over the last year. The financial data presented from CoreLogic predicts monthly home-price gains along with annual gains. The report expects home prices to rise by about 5.7% from July 2014 to July 2015. In comparison to last year’s forecast, residential property values are expected to rise in 2015 but at a considerably slower rate than that of what was reported within last year.
A decline in foreclosures
When the housing market crashed, home foreclosures rose in a sharp spike and have remained at high levels for the following years. For the past few years, foreclosure rates have seen a considerable decline and many real estate experts consider this as a positive sign for a recovering real estate market, as well as the overall economy. For about 31 months in a row, foreclosure inventory has shown a notable decline. Fewer homes are expected to be foreclosed in 2015 and it will help the market recover from its dramatic crash.
More people will qualify for mortgages
According to a Bank Lending Practices Survey done by the Federal Reserve, mortgage lenders are expected to relax their standards for applicants. It is expected that lenders will allow applicants with lower credit scores and higher debts to obtain mortgages. This is actually a reaction to lower loan volumes and it was first noticed in 2014 and is expected to continue in 2015.
The realtors at Frankel Realty are aware of current market trends and how rapidly they change. If you need professional guidance for real estate transactions in 2015, consult with Frankel Realty. Call us on (561) 427-2154.