They also see a new group poised to buy: Millennials. Here's an excerpt from the article, with input from Zillow's chief economist, Stan Humphries:
For years, many millennials have postponed homeownership in favor of renting, but that may also change next year as a growing number of Gen Yers start families and seek more stability. "By the end of 2015, millennial buyers will represent the largest group of homebuyers, taking over from Generation X," Humphries says. "They prefer smaller units closer to the urban core, so it will be interesting to see whether they follow the time-honored path towards the periphery of the metro.".
Something expected to continue in 2015? Baby boomers downsizing and moving closer to their kids and grandkids.
Financing options are improving as well, including a new 3% down program from Freddy and Fannie. And for many, past short sales or foreclosures are starting to "age out" of credit reports so more people may start to qualify to buy homes.
Experts are predicting a better market for buyers in general, with more inventory coming on and the market beginning to balance out. They also see interest rates staying low, estimating an increase to 5% by the end of the year. In our current local market however, inventory remains tight, as reflected in this recent Seattle PI piece. Says Windermere president OB Jacobi, "Buyers barely slowed down long enough to take a break for Christmas. All this sales activity has eaten even further into already low inventory levels." Bryon and I certainly noticed this trend going into the last quarter of 2014; there was truly no break in the action.
We are looking forward to an exciting year in real estate and will continue to keep you updated on market and design trends.
Happy 2015!! If we can help in any way, please get in touch!