The housing market in the New Year could see some significant growth, the lead economist for Realtor.come recently predicted.
Evidently, chief economist Jonathan Smoke told news organizations that he expects to see a gradual return of first-time home buyers as well as an increase in home construction.
These trends are sure to have an impact on our local housing markets here in Plymouth and Canton. So continue reading to learn more about what’s expected in the new year.
An Overview of 2015 Real Estate Predictions
Economists believe that first-time home buyers and a rise in home construction are going to be instrumental in improving the housing market in 2015.
Experts believe that buyers, encouraged by an improving job market and wage growth, will enter the market in higher numbers than previous years.
Meanwhile, new home construction is expected to grow as mortgage lending becomes more flexible and builders become more optimistic about the state of the market.
Here are some specific predictions they’ve made:
- Smokes predicts that new home sales will increase 25 percent in 2015 from the current rate of about 440,000 for 2014.
- In comparison, the National Association of Home Builders predicts a gain of 28 percent.
- And the National Association of Realtors predicts a 41 percent gain on new home sales.
- Smokes predicts there will be an 8 percent increase in the sales of existing homes as well as a 4 to 5 percent increase in home-price appreciation.
- He expects mortgage rates to increase from 4 to 5 percent by the end of 2015.
- He also predicts a 21 percent increase in construction starts on single-family homes.
Real estate analysts also predict that more builders will begin constructing a larger volume of less-expensive housing.
Residents in the country appear to have similar levels of optimism about the housing market.
For instance, in a Trulia survey, 36 percent of 2,008 U.S. respondents said they believe 2015 will be better than 2014 for selling a home.
What To Expect from the Plymouth, Canton Housing Markets in 2015
National trends like the ones predicted above are sure to have an impact on us here in Plymouth and Canton.
To discover how these trends might affect your home selling and home buying efforts in the New Year, you’ll want to talk to an expert real estate agent, such as us on the Bittinger Team.
Contact us today and we’d be happy to discuss your personal real estate goals and how they may be impacted by national real estate trends.
Until next time,
Noel
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