Thursday, January 15, 2015
Great news for realtors as well as home buyers: the forecast for home buying in 2015 is very sunny, with the prices of existing home sales rising seven percent, according to the National Association of Realtors. 2014 was a bit gloomy on the home sales front, with the sales of previously-owned homes falling below that of 2013. This was due in part to things like the weather (for example, the Polar Vortex at the beginning of last year). But, Lawrence Yun, Chief Economist of the National Association of Realtors, sees a steady increase in home buying that will continue well into 2016. This is because more people are more willing to sell their properties. “The improving job market has consumers feeling more confident, and the rebound in home prices is building household wealth for homeowners and giving them the ability to sell after waiting the last few years,” said Yun at an NAR conference late last year. Also giving potential buyers and sellers confidence? The fact that home prices have been steadily rising over the last few years. “[This] boosts confidence in the market and traditionally gives current home owners the ability to use their equity buildup as a down payment towards their next home purchase,” said Yun, quoted in an article for Realtor Mag.
If you are looking for a home in Meadowmont (pictured above) please use our Meadowmont neighborhood resource.
But of course, there are some storm clouds on the way to sunny weather. There are anticipated increases in mortgage rates coming our way in 2015, which may make those who were able to lock in those low mortgage rates from three to five years ago hesitant to sell their home and lose the comfortable deal they’ve grown accustomed to. Also, we are currently in a period of low first-time home buyers—the lowest it’s been since 1987. Millennials are not as interested in marriage and family as the previous generation, Generation X, which are two major factors that influence first-time home buying. Many millennials have been renting and putting off buying their first home for these reasons, among others. But, Yun and others predict that this trend may change during the end of this new year, and that millennials will finally replace Generation X as the largest group of first-time buyers. There are also some unpredictability factors that could tip the scales of real estate, such as global situations that affect the US dollar, weather, and unemployment and the job market, among others. But overall, this year is looking much more pleasant than years past and realtors have a lot to look forward to in the way of previously owned home buying in their area.
For more information on real estate trends in the Triangle, visit Real Estate Experts at www.realestateexperts.net. Our Market Statistics page is state of the art and will help both buyers and sellers better understand price trends in the past and moving forward.