Not very long ago, realtors and homeowners were facing numerous challenges. As the economy is experiencing a boost, things seem to be back on a better path, and 2015 promises to be the year when the housing market regains some of its strength. There are four signs this year could be a great one for homebuying.
Job Market Recovery
Since more companies are hiring workers, it is becoming easier to find stable employment. Earning a decent wage brings confidence to a homeowner facing a monthly mortgage. The job market is growing, and the unemployment rate has been dashed to below six percent, so the stage is set for homebuying.
Reasonable Home Prices
Even though home prices rose almost five percent last year, it was a smaller increase than years past. This trend is expected to continue into 2015. When combined with low mortgage rates, this sets the stage for homebuyers to grab affordable deals.
During the recession, many Americans were forced to rent housing. This apartment demand led to a soar in rent prices. To avoid this expense, many people are reconsidering homebuying, especially as mortgage rates remain steadily low.
The Urge for Millennials to Leave Their Parents’ Houses
It is a common trend for college graduates to return home and live with their parents. Only 36 percent of Americans under the age of 35 own a house. It is common for young people to rent, but most individuals would prefer to have a larger space. In the recent past, strict lending standards made it difficult to balance a mortgage with student loans. However, Fannie Mae and Freddie Mac recently introduced programs for first-time buyers to purchase homes with lower down payments. As more people gain better employment from an improving economy, credit worthiness will increase. This provides the opportunity to obtain homes.