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2015 Real Estate Outlook from Real Estate Experts

Posted on Mar 9, 2015

Home sales across many prominent states known for frequent real estate boom and bust were slowed in 2014, in large part due to uncertainty among home buyers and investors. On the bright side, many homes were selling for more than the market price with multiple offers. But as the New Year begins, real estate experts such as Than Merrill expect for a more balanced housing market, with home sales rising and prices increasing moderately.

If this forecast is true, it could be a great news for potential sellers and buyers alike. For buyers there could be more opportunities and options that they missed out in the previous year. For sellers, the bidding war will bring in more offers and their chances to make profit will increase. According to the California Association of REALTORS, the year 2015 will see an 8.2 percent decrease in single-family home sales but a 5.8 percent increase in sales statewide. The 2014 median home price was expected to be 12 percent higher than in 2013. The association believes that this price will rise 5.2 percent in 2015 compared to the previous year.

This year, existing home sales will be higher and remain at a healthier level to benefit both sellers and buyers. The year also brings in opportunities for first-time buyers to jump into housing market after having stayed away since the crisis in 2008. All in all, 2015 is going to see increase in employment that will empower new buyers as well as younger generations to fuel the housing recovery. Access to credit is also expected to improve in the near future. However, REALTOR magazine notes that the housing affordability may experience a setback due to sudden home-price appreciation and mortgage interest rates but the decline could be offset by increase in salaries for many households.

Real estate has always been a hot spot compared to other types of investments and 2015 is going to prove this fact. The stability that is seen in some real estate markets is attracting investors particularly from outside the US. So if you are one of the people sitting on the sidelines and expecting the home prices to decline further, year 2015 is the time to change your perspective about housing market and invest in homes for the future. With rates still at low levels compared to the previous recessions, you may find the perfect home that meets your budget and needs.