Will 2015 Be Good To Real Estate?

housebuyingDepending on what you read or who you listen to on the TV, 2015 will either be the breakout year for real estate or another humdrum year,

I like to be optimistic and since it’s only the very beginning of 2015, let’s take a look at why 2015 will be a good real estate year.

The Home Seller Perspective

  1. Mortgage Interest Rates are predicted to stay low. That’s good for home buyers, too. It means that mortgages will be affordable and the amount of the monthly payment will be smaller. More home buyers means more competition for homes means stable to rising home prices. Good for the seller.
  2. Housing Inventory will remain low. Even though home prices are rising, my feeling is they haven’t risen enough to make enough sellers want to sell. A lot of people have re-financed their home into very low mortgage rates and are probably hunkering down. A small number of homes on the market means more competition among buyers who want to buy a home.
  3. Home Prices will stabilize or rise moderately. This may not sound like a good thing to home sellers who would like to see their home values go through the roof. It’s really a good thing, though. The early 2000s saw a lot of people get into homes they really couldn’t afford. Once the chickens came home to roost, so to speak, we had our foreclosure and short sale crisis. No one wants that, again. So mortgages are a little harder to come by which means that even though there are buyers out in the world there aren’t so many of them that there will be a feeding frenzy like we had at the beginning of the 21st Century.

The Home Buyer Perspective

  1. Mortgage Interest Rates are predicted to stay low. This is the same number one reason from the seller perspective, too. It really does make sense to buy a house while mortgage rates are so low. The $300,000 house at 4.25% is a whole lot more affordable than the $300,000 at 5.25% or 6.00%.
  2. Motivated Sellers will be willing to negotiate. Back in the olden days, sellers were less willing to negotiate on terms or make repairs, After all they had home buyers lined up around the block.  Now, if the seller really wants to sell their house and move on to the next chapter of their life there may be a good deal.
  3. Stable Home Prices. My guess is that if buyers decide to buy a house in 2015, they’ll be able to take a little time to look around and make sure the house they eventually move into will be the one they really want…not the one they grab because they were afraid to walk out the door without making an offer. A chance to take a 2nd look will be in the cards.

Will 2015 Be Good To Real Estate?

My guess is that 2015 will be a good year for real estate for both buyers and sellers. We won’t have the crazed frenzy we had during the housing bubble years thanks to stricter mortgage underwriting guidelines. The home sellers who put their home on the market will be serious. The end result is that qualified buyers will be able to choose their home wisely and negotiate in good faith with sellers that now have a little equity in their homes.

Now, if it would just warm up a bit.

About Ken Montville

Ken Montville is a Realtor® and Associate Broker with RE/MAX United Real Estate in the beautiful Maryland Suburbs of Washington, DC. He has been selling nice homes since 1999. Way back in the 20th Century.

When Ken Is not doing the real estate thing he can be found all over social media in places too numerous to mention and he listens to jazz, reads a little (mostly non-fiction), hangs out with the Rotary Club of College Park, MD and can be found blogging at MDSuburbanHomes.com