We have been seeing a strong recovery in the real estate
market in our local area and with the 2015 Spring Market rite around the corner
there are several telltale signs that this great recovery should continue this
year as well.
Home Prices have
Stabilized Overall
Home prices in the U.S increased by about 4.5% last year,
although a slightly smaller increase that 2013 when prices nationally rose by
nearly 11%, this is still a sign of price stabilization.
Job Market &
Mortgage Rates
Probably the two biggest factors that support the Housing
Market are the Job’s Market and Mortgage Interest rates. As many of you have seen in the news,
companies are continuing to add jobs thus lowering the unemployment rate, which
has dropped to 5.6% in December of 2014 in turn causing consumer confidence to
rise. As the job market continues to
improve thus increasing consumer sentiment, more home buyers (and first time
home buyers) are entering the market.
Moreover Mortgage Interest rates have hit new lows with the 30 year
fixed rate moving as low as 3.67%. In
addition to the increased jobs market and lower interest rates the final factor
that is driving the housing recovery are the recent programs offered for
Freddie Mac & Fannie Mae that would allow first – time home buyers to
purchase homes with lower down payments (3% instead of the previous 5%
min.) With the cost of the FHA mortgages
being reduced in turn it allows for monthly mortgage insurance premiums to be
reduced. Taking all of this into
consideration we are expecting a vast increase of new home buyers who are
confidently entering into the market.
Rents Have Continued
to Increase
Additionally Rental Prices, especially in our area have
continued to rise. This along with the low mortgage rates along with easier mortgage
availability will encourage those who were renters, to become new home buyers.
Wrapping it up
In our local market we are continuing to see homes in good
location and condition selling faster, and in fact at times with multiple
offers.
It is our hope that this summary provides you with an
understanding of what the current state of our local market is. If there is anything else that we can do for
you, please let us know as it would be our pleasure to assist you and answer
any of your Real Estate questions.
