Just like in fashion, music, and countless other areas of life, real estate also has trends that come and go. But unlike these other topics, watching real estate trends can have a serious impact on your long-term financial status. If you're in the market for a new home or are thinking about selling, watching for real estate trends is a must. Find out why and see what trends are hot this year.
Why Keep Tabs on Trends?
There's almost no better way to gauge the best time to buy and sell than watching real estate trends. You'll find out how much inventory is out there and whether prices are expected to increase, decrease, or stall. Real estate trends will also clue you into what's coming up in the short- and long-term, giving you a better sense of whether you should act now or wait a few months or even a year to buy or sell.
Another bonus of watching real estate trends is finding out what to expect in the process of buying or selling a home. When things are good for sellers, for example, they can often expect higher offers with fewer contingencies. This will help you set the right listing price, estimate how long it will take to sell, and anticipate any delays in the selling process. Meanwhile, it prepares buyers for a bidding war and lets them know to act fast when they see something they like. Without that knowledge, some buyers and sellers can miss out on great opportunities.
So what's in store for the real estate industry in 2015? Read on to see what trends are hot this year.
Trend 1: Millennials Entering the Market
Image via Flickr by danielmoyle
Millennials have been struggling to recover from the recession, which hit right around the time they entered the job market. Plus, millions of them have suffered under the weight of student loan debt. However, a turn in the real estate market could bring these hesitant home buyers into mix in 2015.
In recent years, investors were dominating the market, making it hard for traditional buyers to compete. But in 2015, slower home value growth will make properties less attractive to investors and more attainable for millennials. This also marks a change from a seller's market to a buyer's market, giving millennials and other traditional buyers more negotiating power when it comes to price and contingencies for financing and inspections.
Trend 2: Mobile Apps Becoming More Essential for Sellers
Image via Flickr by pabak sarkar
With people spending more and more time plugged in on their smartphones and tablets, it's no surprise that mobile apps are becoming the hottest way to search for and sell property. Though real estate websites have been popular for years, more buyers are looking for a fast and efficient way to search for properties on the go.
Apps like Zillow, Trulia, and Redfin offer an easy way to research neighborhoods and asking prices from a smartphone with access to a reliable 4g network. The Galaxy S6 Edge, iPhone 6 Plus, and other smartphones that have big screens and fast processors make finding a home easier than ever before. Therefore, sellers need to make sure their home is listed on a great mobile site in order to be seen by as many buyers as possible.
Trend 3: Lower Rates, More Obstacles
Mortgage rates dropped significantly in 2014, and rates are expected to stay relatively low in 2015. For well-qualified buyers, getting a rate below 4 percent is fairly easy, saving thousands of dollars in the long-term.
However, buyers should expect more hoops to jump through to secure lower mortgage rates. Lenders are requiring more documentation than ever before in order to prevent the foreclosure issues that become rampant during the recession. Though the process to get approved may be more cumbersome, the payoff can be huge for those buyers who are able to secure low mortgage rates.
In general, 2015 looks to be a great time to buy, especially due to the incredibly low mortgage rates that have recently become available. Make sure you're aware of these trends to get the most out of your search for your dream home.
