Housing Forecast For 2015

Dated: 01/05/2015

Views: 711

The housing market doesn’t hibernate in the winter. Sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate, according to a new study by the real estate brokerage Redfin. The winter season officially takes place between Dec. 21 and March 20, and real estate professionals should be ready for a season that often brings in more focused and active sellers and buyers. In an update to a two-year analysisit completed last year, Redfin researchers studied nationwide home listings,sales prices, and time-on-market data from 2010 through October 2014. The study found that February is “historically the best month to list, with an average of 66 percent of homes listed then selling within 90 days,” according to Redfin’s research. Even in cold weather cities researchers found that home sellers were better off listing their homes in the winter than during other seasons. The winter tends to net sellers’ more than their asking price during the months of December, January, February, and March than listings from June through November. Listing during those four winter months has resulted in higher percentages of above-asking-price sales than listing during any months ,other than April and May. Redfin researchers found that in 2012, December listings were producing the highest percentage of above-asking-price sales for the entire year at 17 percent. Researchers say the winter market is less competitive for sellers since many people tend to wait until the spring to list.The smaller inventory of active listings helps sellers get more attention from buyers on their properties. Also, many large corporations often transfer employees or hire new ones early in the year, creating opportunities for winter sellers from very motivated purchasers. Source:The Los Angeles Times

This year is expected to end with lackluster economic growth, but economists are projecting a strengthening heading into the new year, due to forecasted consumer income rises, reduced fiscal headwinds, and a broadening housing recovery, according to Fannie Mae’s latest report from its Economic &Strategic Research Group. Fannie Mae Chief Economist Doug Duncan says economists expect the fourth quarter of this year to be weaker than the third quarter, but doesn't see it as a sign of overall weakness. “Although real consumer spending growth has disappointed this year, it appears poised to accelerate in November due to a significant jump in auto sales and a likely pick-up in home heating costs,” Duncan says. “The decrease in oil prices certainly may support consumer spending over time, particularly now during the holiday shopping season, as well as hold down inflation as a potential benefit to consumption.” Fannie Mae has upgraded its forecast for 2015 from a projected2.5 percent growth in the economy to 2.7 percent. "Similarly, the housing market is likely to continue its gradual climb upward next year after a subpar2014," says Duncan. "We anticipate a fairly strong increase in housing starts in response to stronger employment and some improvement in related household incomes. As a result, that may help to unfold some of the suppressed household formation numbers and incent builders to meet some of that increased demand.” For all of 2015, Fannie Mae economists project that total housing starts will rise by about 22 percent and total home sales will increase by about 5 percent. Source:Fannie Mae 

 

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Carolann Newton

I was a domestic paralegal for 8 years prior to Real Estate. Since I have been in Real Estate I have grown to love this business, even though it does have it's challenges; it is very exciting. There i....

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