Posted on Jan. 15th, 2015
In the field of Boston real estate, many experts see 2015 to be the most successful year for home sales within the span of 10 years. Are you interested to know why? The following are the reasons for the prediction:
Interest Rates
In May of 2013, the interest rates started going up and continued increasing throughout the following year that caused for the home sales to slow down. Though many thought the interests would be rising continuously, September 2014 marked an end in it. The rates started going down as stock market dipped. However, the stock market recovered from the dip yet the rates were staying low due to the oil prices. It is seen that if oil prices are kept low, and so as the interest rates.
Lending Starts to Loosen
As the housing crashed, lenders tightened up the guidelines, and also, they raised the fees for their own good. They took their strictness way over the normal guidelines and slowed the recovery of the housing. After 5 years, the lenders started loosening their rules and many homebuyers were able to take advantage of the changes.
Home Equity Is Rising
As the Boston real estate price in certain places increased, the home values have increased the homeowners’ equity positions and enabled more people to have their homes listed and trade it either up or down. Due to the lack of homeowners equity, many people were unable to sell or even buy either their bigger or smaller home. It has resulted the home sales a logjam yet with the improved equity, the logjam is working its way out.
The Stock Market
Due to the recent highs in the stock market, many people have improved their feelings towards the overall economy. The activity of buyers was unusually low and there was around 10% correction in the stock market. If this state of the stock market continues, there is a great chance that the Boston real estate market would improve in no time.
The Weather
Mild winter is always the basis on making the Boston real estate market start early and end the year with big sales. So far, 2013 has ended great for home sales and if the mild weather will stay this way, there is a great chance that the real estate would boost in no time.
Homeowners are Realistic Again
Home sellers are seen to list or relist their properties again and make it possible to be realistic again with their Boston real estate price offers. Given that overpricing has caused buyers to choose those in the budget they can afford for the past years. Home sellers are now expected to be more realistic with their prices instead of selling it again at high prices.
Pent-Up Buyer Demands
Pent-up demand was created because of the slow fall with the home buyers. Whenever the market slows down, the buyers would be racing to get properties. This is projected to be seen in the market for the following years.
Other reasons why 2015 is a great year for home buyers are gas prices and also the overall economy. With these reasons in mind, there is no doubt that the home sales will boost and improve the Massachusetts Real Estate field.