2015 Real Estate Prediction: Smooth Sailing Ahead!
As we head toward the end of 2014, there’s some very good news to share: the housing market should continue to enjoy smooth sailing in 2015. That prediction comes from one of the nation’s leading housing economists, Zillow’s Stan Humphries.
The chief of the home and real estate marketplace dedicated to helping homeowners, home buyers, sellers, renters, real estate agents, mortgage professionals, landlords and property managers find and share vital information about homes, real estate, mortgages and home improvement, has some promising things to say about the coming year.
First, he predicts that home values will rise 2.5% next year. That’s slower than the 6% rise we’ve experienced over the last twelve months but a step in the right direction, for sure.
Second, he says home builders are shifting their focus to creating more houses at lower prices.
Those two predictions combined lead him to the conclusion that more first-time buyers will take the plunge into homeownership next year. Add to that the fact that he sees rents climbing at 3.5%, which is faster than sale prices will rise, and its easy to see why the security of a fixed mortgage payment will be the preferred choice.
What that means is by the end of 2015, people 35 and under, the millennials, will make up the greatest portion of the nation’s home buying market. They will be overtaking Generation X, buying in a more stable market.
“This more balanced market will be smoother sailing for everyone, both for buyers in search of a competitive advantage and for sellers who turn around and become buyers themselves,” Humphries wrote.
If you are looking for smooth sailing in a real estate transaction, as a buyer or a seller in Montecito, Hope Ranch and Santa Barbara, call me, John, at (805) 455-1420 or my brother Bill at (805) 455-3030. Meantime, please check out our comprehensive website to see what’s on the market today.