3 Real Estate Forecasts for 2015

The New Year is here and various real estate experts are already sharing their 2015 real estate forecasts. Based on the past trends for 2014, the real estate industry looks like it’s continuing to move in a positive direction due to slowly rising mortgage rates and growing housing inventory. Here are 3 real estate forecasts for 2015.

1.) Millenials are movin’ on up: For years, many Millennials have postponed homeownership in favor of renting, but that may change this year as a growing number of Gen Yers start families and seek more stability. "By the end of 2015, millennial buyers will represent the largest group of homebuyers, taking over from Generation X," states Stan Humphries, chief economist for Zillow.com. "They prefer smaller units closer to the urban core, so it will be interesting to see whether they follow the time-honored path towards the periphery of the metro."

2.) Mortgage availability rising: While mortgage rates may not remain at the historic lows seen recently, more people may qualify for home loans as issues like foreclosures or short sales age out of their credit reports and Freddie Mac and Fannie Mae ease mortgage eligibility. Freddie and Fannie recently announced a new mortgage program for buyers with a down payment as low as three percent. Nela Richardson, Redfin.com's chief economist states, "Freddie and Fannie have always been the industry leaders, and they're saying, 'It's okay to lend to people who don't have five percent down. It's OK to extend credit in a reasonable and safe manner."

3.) Hello Tract Homes: Some real estate experts expect to see more new tract home developments throughout the U.S. This predicted 2015 real estate trend will likely see an eighteen to twenty percent increase in home starts compared to 2014. This robust activity means lots of sales, with many homes at the "starter" level being constructed. This development could attract the demographic of Millennials ready to buy or Baby Boomers ready to downsize.

Though no one can accurately predict the 2015 real estate forecast, experts are still optimistic for the coming market trends. Looking to sell your AZ home? Contact the Russo Team for a complimentary analysis of your home's approximate present value on the market today or contact us to help you find the right home for 2015. – Frank

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