With all the foreclosures over the past few years and the price appreciation that followed, investors have been snapping up real estate deals left and right. The resulting effect, the median sale price of single family homes and condos reached their highest point since 2008. But if you are looking for a new home, don’t worry, experts predict the 2015 market will see a return to normalcy.
Home value growth has recently reached 6%, but experts from Zillow.com believe that in 2015 home value growth will be cut in half, to 3%. This drop will make real estate opportunities less attractive to investors, and in turn, lead to more available homes on the market. In addition to paying a lower cost, buyers will also not feel as rushed or be as willing to compromise when purchasing a home. The “this house is almost perfect so, I better get it before someone else does,” mentality will give way to allowing buyers to really take the time to find their actual perfect home.
However, there are still two groups predicted to possibly make a jump on the American housing market. One is overseas buyers. With some countries still in economic turmoil, foreign investors may be looking to the U.S. to invest in properties.
The other group looking to find the perfect home to settle into, the millennials. The millennials have been putting off buying in favor of renting. But experts say as Generation Yers are beginning to start families and looking for a stable and secure place to call home they are motivated to forgo renting and start buying.
But even with two potentially large buying groups, the Baby Boomers may offset some of that demand. With Baby Boomers downsizing, moving into retirement communities or wanting to be closer to their kids and grandchildren, more homes will be readily available on the market. Additionally, some experts are predicting a large increase in new home building and sales, as much as an 18-20 percent increase.
With all the changes in the market now is a great time to buy. If you are looking to buy a new home currently or considering downsizing, Move-Up America has several programs to help you find or sell your home. For more information on our Move-Up or Right Size programs, please contact us.