What to expect for 2015’s housing market

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12/16/2014 | Author: Editorial Staff

According to realtor.com’s chief economist, 2015 will have positive trends in the real estate industry, thanks to an improving economy. But even with the predicted rise in buyers, end to the foreclosure crisis, and new homes being built, your clients will still experience struggles with credit and face higher mortgage rates. Realtor.com makes five predictions for 2015, including these three:

Rising mortgage rates. The improving economy means mortgage rates will probably rise and are forecasted to be around 5% by the end of 2015 for a 30-year fixed-rate mortgage. Let your prospects and clients know that the rates are on their way up, so buying earlier in the year may save them money.

More millennials will be looking to buy. Sixty-five percent of first-time homebuyers are millennials, and this generation is bigger than the baby-boomer generation. Although they’re eager to buy, student-loan debt and challenges finding jobs mean they’ll face more hurdles meeting credit-qualification standards. Be prepared to help your millennial clients find resources to improve their credit and strengthen their position as homebuyers.

Access to credit will still be limited. New federal housing policies may help change the current stricter qualification standards that many consumers face. However, it still may take more effort for consumers to get the credit they need. Let your clients know what to expect and prepare them for potential hiccups in the loan-approval process.

Categories: Business tips
Tags: 2015 outlook, housing trends


Comments

Jorge S on 12/26/2014

I know what people thought of the 2008 housing market, and they were dead wrong. Some, like David Lichtenstein thought that the economy will retaliate, some thought that it will fail completely. Here is an example of that : http://www.nytimes.com/2008/05/07/business/07lightstone.html?pagewanted=all

Steve Kelley on 12/17/2014

Not just all positive, but all about making credit easier. Realtor associations should not blindly promote easy credit just for the sake of more purchasers by more marginal buyers. The benefit to Realtors may be great, but the long term damage to our economy ....... well one only has to look at 2008 to see where liberal credit got us. Instead of pushing easy credit, Realtors should unite to fix a broken appraisal process.

Volley Goodman on 12/16/2014

This is really more of the same “always upbeat” sales guidance we always get from ALL real estate associations. When I was younger I used to laugh at it. Today not so much. I suppose being experienced and older I would prefer something more thoughtful than this All positive All the time “economic” presentation.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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