As the housing market goes, so goes the American economy. So what can we expect 2015? Many companies and firms publish their opinions on economic trends for the year. Here’s what Kiplinger’s Personal Finance magazine has to say.
Although in the years leading up to 2014 some housing markets saw huge gains while others saw minimal gains, most markets are starting to level off. Andres Carbacho-Burgos of Moody’s Analytics says most metro areas are now about where they should be. Based on that, Kiplinger forecasts that in 2015:
- Home prices nationally will rise by 3.5 percent.
- Existing home sales will increase 8 percent (after a 2 percent decrease in 2014).
- New-home sales will increase 25 percent (after rising just 4 percent in 2014).
The company also forecasts an increase in first-time buyers, one of the crucial steps to housing recovery that has been lacking. The National Association of REALTORS® (NAR) 2014 Profile of Home Buyers and Sellers showed that first-time home purchases were at their lowest level since 1987.
“Many young people who would normally fill the ranks of first-time home buyers were set back by the sluggish economic recovery,” according to Kiplinger. Incomes were stalled, credit standards were tight, and student-loan debt tripled over the last decade. But all of these factors are improving – low interest rates are expected to continue, and credit standards are loosening. In addition, NAR chief economist Lawrence Yun says, “It’s all about consistent job growth for a prolonged period, and we’re entering that stage.”
The above numbers and facts pertain to the nation as a whole. Our local market mirrors the increase and strength in the national market but our numbers are a little more robust here in Oregon. Call me to talk about your particular location and neighborhood. We are seeing big increases across the board but each neighborhood is different-literally.
Rachel Sheller-Principal Broker, Oregon first