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What To Expect For The Real Estate Market in 2015

la crescenta real estate predictions

What lies ahead for the real estate market in 2015?  The key considerations are:

Interest Rates:  Although interest rates are expected to remain low  they will slightly increase  as the Fed begins to tighten credit.  If interest rates rise too quickly expect to see a small  surge in home prices as those buyers who have been fence sitting take action quickly. But if rates rise too much the market (and prices) will slow as higher interest rates reduce affordability.

Appreciation: In 2014 many investors retreated from the market .  Their withdrawal slowed appreciation and made room for first time buyers.  Over the last several years, the bottom fishers investors have scooped up all the good deals.  2015 will be the year of reduced down payments and a big return of first time buyers.

Inventory:  In 2014 inventory increased as fewer homeowners were underwater and now had the equity to sell.  Housing Inventory should continue to slightly increase as more homeowners become positioned to move up (or downsize).


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