As the temperatures get warmer, and we inch closer to spring, the spring real estate market is getting ready to bloom. For real estate professionals, that means an increase in listings, open houses and (hopefully!) closings. If you’re not ready for spring, you can get ahead of the trends by keeping the following in mind:
– Year of the Millennial. 2015 is the year Millennials will overtake Generation Xers as homebuyers, according to Zillow. In addition, about 42% of Millennials say they want to buy a home in the next one to five years, meaning real estate professionals should get ready for that influx now. This means getting to know what they want in a home, and connecting via social media. With this interest, coupled with rising rental rates, expect the amount of Millennials entering the real estate marketplace to do the same.
– Easier for first time homeowners. Thanks to a new program Fannie Mae and Freddie Mac announced last December, many people could become first time homebuyers this year. The LA Times says this program is designed to help those with steady income and good credit, but not the traditional down payment amount, to purchase a home. Instead of needing 5, 10 or even 20% for a down payment, homebuyers could qualify to purchase a home with a little as 3% down. This would open the door for many on the bubble of home ownership to become clients this spring.
– Interest rates to rise. Back in November, the Federal Reserve made it pretty clear that interest rates were going to rise this year. According to the Washington Post, these remarks mean a stronger recovery from the Great Recession, but it may cause potential clients to strike while the rate is low. Be ready for first-time homebuyers to take advantage of low rates, while they still can.
The market can be unpredictable, and these are just a few possible trends that could be making their way to your market in 2015.
Until next time….
Info provided by HSA Home Warrantly