Each year at this time several industry leaders publish their projections for real estate in the coming year. Most look at driving economic factors, others ask leading real estate brokers what they are seeing, and some ask consumers directly their thoughts. So let’s take a look at some of the projections that are being made for real estate in 2015.
First and foremost, for us here in Utah, Trulia has named us a “Top 10 Market to Watch in 2015″. With a strong economy and job market in our state, this certainly isn’t surprising. Our population is growing both organically and via relocation from surrounding states.
Trulia also projects that price gains will continue to slow as they did in 2014. While 2103 saw a large correction, 2014 appreciation was only approximately 4%, and many anticipate that to be similar in 2015. Prices nationally are 3% undervalued compared to fundamentals.
Trulia also projects that housing starts and new home sales will be down. However, several disagree with that assessment, including Moody’s and NAR. Both project that new home sales will lead the market to a higher level of recovery. Other projections from NAR include; mortgage rates to increase (although we have seen them dip slightly as of late), drop in oil prices will boost housing, foreclosures recede to pre-recession levels, rent rises to outpace home-value growth, and a stronger economy will lead to greater confidence.
Imprev, a real estate marketing company, interviewed several leading brokers, asking them their thoughts on 2015 and the real estate market. While the survey broke their responses into four categories, overall, most saw the market improving or staying the same. There was a decrease in those who saw it deteriorating from 2014 to 2015.
While all of these projections are nationally driven, you can always meet with one of our professional agents to get an understanding of what is happening in your area. It’s important to understand that real estate is very local. Trusting a local professional to give you an assessment is always the best way to go.