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Last year was a great year for real estate, and 2015 looks like it will be even better! According to the latest predictions from Realtor.com, several factors will contribute to the success of real estate in 2015. Millennial buyers will make a huge impact on real estate, along with a forecasted increase in mortgage rates. It’s only a matter of time before we see how these predictions begin to take shape and impact the Austin real estate market.
Here are some of the top predictions for real estate in 2015:
Millennial Buyers- Generation Y buyers (born between 1981 and 2000) have been mostly absent from the market, due to difficulty finding jobs in this low economy. Now that the economy is back on the rise, we can expect buyers in their twenties to dominate the housing market. Other factors, like improved lending standards and affordable homes, will also help millennial buyers be successful in 2015.
Mortgage Rates- Experts predict mortgage rates to rise to nearly 5% by the end of 2015. This is another sign of a recovering economy. The balance of job growth and reasonable rates will help buyers afford homes. Major lenders may also roll out new mortgage programs throughout the year to help all sorts of buyers achieve the dream of homeownership.
Home Starts- Last year, multifamily developments like apartments made up the majority of home starts. In 2015, however, experts are predicting a 16% increase in new construction as a result of more single-family home development. However, a shortage of skilled labor and building materials may hinder this growth.
Foreclosures- Since the economic downturn in 2008, foreclosures and short sales have been at an all-time high. However, 2015 may be the year that we finally see an end to the dominance of foreclosures in real estate markets. Foreclosures are predicted to drop back to normal levels by the end of 2015. A “normal” level will be determined by each individual market.
We look forward to seeing what exciting things are to come for real estate in 2015. If you have any questions about buying or selling a home in the Austin market, contact us today!