In the final countdown to 2015, I would like to share some of my predictions for the New Year. Among these thoughts are: 2015 will be the year to buy or sell a home.
- 2015 will be the year to buy or sell a home.
- Interest rates will head up but not until summer.
- It is still a buyers or renters market.
- Affordability may be a concern.
- Selling or buying a home this year will be a little easier thanks to the federal government. Fannie and Freddie have a new mortgage product that allows a 3% down payment as well as other options for financing. See one of our recommended lenders for details. As in previous years VHDA will be offering special financing for first time homebuyers. Check the website or call me or my team members for more info.
- Wall Street is still putting bets on the feds holding off on raising interest rates until spring. Continued growing of the economy and falling gas prices may help to accelerate their action. Lock in low rates now before this happens.
- The number of rentals has grown by 2% nationally last year. This accounts for $441 billion in rental payments. If you are looking for investment property, now is the time. Zillow predicts rents will increase 3,5% in 2015. Buying a second home or investment property now will capture some of these gains.
- Lower credit and down payment thresholds are cause for optimism. But rising home values and mortgage rates will impact affordability, especially in costlier housing market. Sellers in more affordable housing markets, especially those with improving economies, are likely to see more buyers. Home price growth is slowing because fewer investors are competing to buy a smaller supply of discount foreclosures, while the inventory of nondistressed properties is growing as prospective home sellers gain equality with appreciating prices. May 2015 bring you prosperity and happiness.
by: Sue Maclary