What Will the New Year Bring to the Real Estate Market?
With the New Year almost upon us, it becomes important that we analyze 2015 real estate predictions so that we can plan our next course of action accordingly. The year 2015 is expected to bring significant changes to the real estate market as a whole, as 2014 proved to be a year of improvement and restoration. Compiled is a list of real estate expectations for 2015, as suggested by Freddie Mac economists:
- Unfortunately, favorable mortgage rates cannot last forever. In 2015, mortgage rates are expected to be on the rise, inching up to approximately 5 percent by the end of the New Year. This prediction emphasizes the importance of acting on your real estate transactions now, to take advantage of favorable mortgage rates.
- With home appreciation continuing to dwindle down into the New Year, Freddie Mac economists are expecting the combination of house price appreciation and increasing mortgage rates to skew affordability for homebuyers.
- As construction has been on the decline in recent years, home building numbers are expected to rise with the arrival of the New Year. Freddie Mac economists are expecting a 20 percent increase in home construction, which will lead to a 5% increase in total home sales.
- Due to a significant decline in refinancing volume, Freddie Mac economists are expecting a decrease in single-family mortgage originations. Refinancing has made up more than half of loan originations recently but will be only 23% of total loan originations in 2015.
- Multi-family mortgage originations are expected to increase by 14%, continuing the 60% increase we have seen since 2011.
With years of experience assisting individuals in selling and buying their homes, you can rest assured that our team is the perfect representation of all your local real estate needs. Contact the Zwahlen Team, your trusted San Ramon Valley Realtors for all of your real estate needs in Danville and the surrounding cities.