Posted on Nov.21st, 2014
It is expected that many organizations have already made individual forecasts on this aspect. From there, it is only expected that the projections made will vary. But overall, the forecast trend will be the same, which goes similarly in the Massachusetts real estate. Most of the price predictions for the coming year involve smaller gains, which is far different from the last months. Some of the US home price predictions are:
• Capital Economics expects that home prices in the US like in the Boston real estate will increase by 4% come 2015, which is the average nationwide. From there, a welcome development will be seen considering that housing is getting more fair value while inflation in house price is slowing down.
• CoreLogic also released in their current HPI Forecast that home price changes will occur on a monthly and annual basis. They predicted that house values are to rise by 5.7% beginning July of 2014 to July 2015.
• Barclays predicted that home prices in the US will rise by 3% next year and by 2% come 2016.
The said forecasts are similar to other sources. From there, it is concluded that appreciation is to continue into next year, but in a lesser degree. The projected smaller gains occurring in 2015 would be the result of the changes in the supply side that are taking place now.
Prediction – Inventory Growth is Expected to Slow Down House Value Appreciation in Several Cities
Housing starts, home sales and consumer confidence became common subjects reported by media in the last months. These aspects were also viewed as metrics of the real estate market’s strength. But the inventory trends were overlooked, which will be among 2015’s driving factor in home prices. This means that shortage in inventory will end in most of US cities come 2015, including in the Boston real estate. Therefore, home buyers will benefit from having more properties they can choose from. Soon, this will lead to lower sale prices and less competition allowing buyers to truly have the property they want.
The inventory levels are gradually becoming normal along with the house markets. From this, it is expected that by 2015, the value of houses will start rising modestly in most cities in the country. It is one of the factors used in arriving at home-price projections.
More Variation Locally
It became a common practice to report US home prices as a single entity. A good example of this is the predictions offered above, but truth is far more complicated. That is because housing conditions always vary when it comes to the local level. Therefore, it is only appropriate to consider the local trends when it comes to buying or selling a home and not depend on the national headlines.
Knowing and being informed about the current real estate trends along with the aspects concerning it is beneficial, which is why national trends are presented for people to take a look at. However, national trends are mostly made for policymakers and economists. When it comes to the local level, it is still suggested for home sellers and buyers to give their attention to price forecasts and projections within the local real estate. This means if you are planning to buy or sell a house in Massachusetts, you should pay attention to the price forecasts and projections in Massachusetts real estate.