Posted on Nov.21st, 2014
The holiday season is just a few days away and soon, a new year will be starting. In US real estate, this is also the time to predict the house buying trends that will take place come 2015. Here is the list of top 5 trends in Massachusetts real estate market.
1. Value of Homes will Continue to Rise, But it Will be Slower
Know that the price trends in real estate will vary a bit locally. It is the main reason why the price is also rising rapidly in other cities in the US like San Francisco. And in some cities, the price is declining. There is no definite thing when it comes to the housing market and the pricing trends since it will always be an aspect in the local real estate.
Also, there are some reports that Case-Shiller Home Price Index is serving as the general indicator about where things are going. It continues to head upward for a while now. On the Case-Shiller report, it was also stated that prices nationwide increased by 5.6% in the last year. As for the real estate predictions regarding price in 2015, CoreLogic released that there will be an occurrence of home-price gains on a monthly basis. It was stated as well that there will be a rise of about 5.7% in home prices from July 2014 to July 2015. The value of residential property will continue to rise next year, but at a much slower pace than the last twelve months.
2. Double-Digits Gains Will Only Occur in the Southwest and California
This is a forecast made by Zillow, which they arrived at by utilizing their interactive forecasting tool. This tool can be adjusted depending on the projected increase or decrease of home values. From there, they were able to obtain data telling that the double-digit gains will only occur in the mentioned areas, including Las Vega and Reno, Nevada.
3. The Mortgage rates for Most of the Duration of 2015 will Linger Below 5%
This forecast was arrived at by Freddie Mac, a government-controlled corporation that deals with buying and selling mortgage securities. Aside from the forecasts on mortgage rates, they also predicted some relating to the overall housing industry. From the data they got from the survey, it tells that there will be a gradual rising of the rates in the next twelve months. It was also projected that the mortgage rise will be concentrated more on the 30-year loan, which would increase or even exceed 5% as 2015 ends.
4.There will be a Continuous Decline in Foreclosures
Foreclosure of homes increased when the housing or real estate crashed. The rate just increased over time. Fortunately, it was seen that it is starting to decline – a sign that Boston real estate and the rest of the real estate market is getting leveled again. It is also a good sign for the economy. Based on the records of CoreLogic, foreclosure inventory declined for thirty-one months. Distressed properties obtained prices that are below their market values, which led to the reduction of the inventory – a good sign for the gradual normalization of the real estate industry.
5.Obtaining Mortgages will Become Easier
This forecast was obtained based on the Senior Loan Officers Survey on Bank Lending Practices results. From that report, it is seen that more mortgage lenders are loosening up their standards in a range of key areas. In translation, easing up on several lending terms and standards has been shown over the past months. Some of the key areas where loosening took place are in debt ratios and credit scores. This means that lenders are now allowing high levels of debt and lower credit scores, aspects that most mortgage borrowers are worried about.