Author: Ron Spencer Real Estate   January 6, 2015

2015 the year you achieve greatness? The year you break bad habits?  The year you get you promoted? Or How about the year you buy a house?  The mood is as high as Mt. Everest we roll into 2015, and the expectations have never been greater. The real estate industry has never looked better, even before the Great Recession, and it’s time you get back in to it.

1.  Low Interest Rates – The 30 and 15 year fixed mortgage rates have been holding steady under the 4% mark and 3.2% respectively.  This means you can lock in a low rate.  If you have been putting off your decision to buy a house, now may be the “perfect storm” of low interest rates and low home prices.

 

2.  Home Prices – In 2015 home prices are expected to continue there rebound in Ohio. According to industry related sources Ohio say a 5.4 % increase in 2014 and can expect at least another 2.5% in 2015.  Combine that with low interest rates, it is making residential real estate look promising again. It could work out even better if you have a hefty down payment, while try to lock in the low 15 year fixed rate.

 

3. Tract Homes – in 2015, expect to see more roadside signs touting new tract home developments coming to a neighborhood near you. This new and improved housing industry will likely see an 18 to 20 percent increase in home starts compared to 2014. This robust activity means lots of sales activity, with many homes at the “starter” level being constructed, which means millennials will finally be able to afford something, while their aging parents will have the option of scaling down their once large households, to single story 1,200 square foot homes.

 

4. Expect the Unexpected – If you look around the industry a lot forecasters are throwing down question marks for 2015 because a majority of markets have moved on past the pre-housing bubble levels.  The markets have shaken off the hangover and it’s leaving most experts to ask the question “What Now?” and some have even labeled 2015 as mysterious. Hence, there are many economic fundamentals and non-fundamentals that will affect the trajectory of home prices in 2015. I’ll tell you in 2016 if that was true.


The general consensus is in 2015 the housing market could really do three things.  It could continue to sore to new heights, the market could plateau, or worst case scenario things outside the real estate industry put pressure on prices. Unfortunately it’s too early to tell but that is also what makes it that more interesting! Interested in more from Ron Spencer ? Download our free Buying Guide to get you on the right track 2015. Also, check out some out past blogs like Don’t Buy Real Estate in The Dark.

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