National Association of REALTORS predicts the first-time home buyer will re-emerge in the new year after staying out of the market after the housing crisis. Access to credit and mortgage qualifications made easier, more employment opportunities should encourage young buyers to enter the market.
The top five housing predictions are:
1. Millennials will drive household formation and result in more first-time home buyers in the market.
2. Home sales are expected to rise 8 percent YOY and distressed property sales will make up a smaller share of growth.
3. Home prices will rise approximately 4.5 percent.
4. Mortgage interest rates will begin to rise by mid-year and will be an average 5 percent by year end.
5. Housing affordability will decline although still remain in a strong range.
Mortgage rates remain low, credit availability is increasing along with inventory levels. Don’t hesitate to get into the market and take a look at your options. It is a great time to buy or sell. For more help or info, contact me.