The real estate market has seen its good and bad days during this past decade. Most people have come to understand that it works in cycles, leaving us with some good years and some not so good ones. While these ebbs and flows occur, what has become apparent is that 2014 has shown great stabilization for real estate.
The trend for this year seems no different. The real estate market is still recovering, but we can all be cautiously optimistic for now, because after all, it has been nine years since the housing bubble. As long as consumers stay optimistic, jobs continue to be added, and we see some more economic growth, real estate should be on its feet by year end.
Our Realtors at Best Real Estate Professional keep up to date with all the latest news and are predicting some new trends given the following factors:
- The Gross Domestic Product (GDP) this year is expected to rise a few percentage points: 2 – 3%
- Consumer confidence has been reported to be at a high adding another year to what has been seen for the past several years
- The unemployment rate is definitely off the lows we saw in 2008 and since then we have seen the best numbers in added jobs this past year
Given these three observations, there are certain trends which seem to be emerging for 2015. If you are in the real estate market or anticipate entering this year, take a look at what we think you can expect.
The Forecast for Pricing
The last part of 2014 saw some rise in home prices as well as tightening of access to credit. These facts say a few things for what people can anticipate in 2015. Once these two factors emerge, you can probably expect hindrances to real estate entry.
Namely, those who are capable of making a purchase in 2015 will likely have saved for the down payment for a while beforehand. For those who do not have a sufficient down payment, it would hard for them to make a real estate purchase given the state of credit.
Keep in mind, although a huge boom in housing prices is not expected in 2015, home prices are targeted to go up slightly. Although this assumption is not earth shattering, it does pose a problem if incomes do not also go up. Once again, we see that buyers will largely be those who have been saving and those who have stellar credit scores.
The Forecast for Sellers
If you are a homeowner who has been sitting on the sidelines and waiting for the real estate turnaround to occur, we predict that 2015 is a great time for you to finally decide to put up the “For Sale” sign on your lawn. Due to the steady rise in home prices, it appears that some people may have added enough equity in their home to take the chance to sell it. In short, sellers are beginning to feel that their homes are no longer significantly undervalued and that may give them an optimistic view to sell.
The Forecast for Millennials
For the past few years, the millennials, those who are 35 and younger, were nowhere on the horizon for real estate transactions. However, recent years have shown that they have established themselves well in jobs and are no longer very young. This group’s economic circumstances have improved enough where the forecast is that they will likely form a significant amount of first time buyer sales in 2015.
Other factors that will drive the millennials to make a real estate move besides that they are getting older is that rental prices seem to be heading up, making homeownership a better option. In addition, this group is entering the age where marriage is likely, which sets the stage for home formation. Finally, with more inventory due to come on the market, renting may not seem so appealing anymore.
Our agents at Best Real Estate Professional have made real estate their careers. They predict that long-term housing will continue to settle. The after effect turmoil, which came from the real estate boom, has now completely leveled off and foreclosures are declining. In sum, normalcy in the housing market is here.
Sort Through The Past
One of the best ways to narrow down your search, through Realtor reviews in Gilbert, is browsing past sales. You’ll see the property, sale date and price. If you are deciding between two agents at the moment, compare past sales. One agent may live in Gilbert, but concentrates on sales in nearby Glendale (the West side). You want a Realtor that lives and sells in Gilbert or the East Valley for the best service. Most, if not all, past sales should reflect an East Valley address such as Gilbert, Mesa, Tempe or Chandler.
A professional Realtor will always have customer testimonials on their website. You can get a pretty good picture about the attitude and professionalism of a Realtor through their website testimonials.
Although full recovery and commercial construction are still a ways away, 2015 poses a good opportunity to get into the real estate market. Our agents at Best Real Estate Professional will gladly answer any questions for you as you anticipate your next move. Contacting us is easy and can be done right from our website, where you can give us your contact information, and we will reach out to you.
Whether you are interested in buying or selling your home, we are here to help.