Buyer Considerations – The Future Promises Big Returns for Home Buyers that Buy Before 2015
The Housing Market Will Continue To Improve This Season
Activity during the first three quarters of 2014 indicates a very active housing market in 2015. All indicators, including:
- Supply – The total number of homes on the market this year, as compared to last year
- Demand – The total number of sales this year as compared to last year
- Consumption – Month’s supply of homes available for sale
- Value – The prices of homes at the beginning of the 3rd Quarter of 2014, vs. 2013.
Also, the pace of sales, prices, foot traffic and inventory all continue to point to steady progress in real estate during 2015.
Although, housing activity has dropped in some markets and price points as compared to 2013, the high investor activity, double-digit price appreciation, and near-record inventory lows will continue to put upward pressure on prices in many markets. This year’s activity appears to be more balanced.
One factor very promising for today’s home buyers is that the number of new homes that are being built now is much too low to keep up with population growth. Historically, new home starts averaged approximately 1.75 million per year, yet only 1 million homes were built in 2013.
The U.S. Census Bureau projects the adult population will grow by roughly 2 million people per year over the next two decades. With the projected rate of population growth, the demand for housing and lack of available inventory will likely raise prices significantly in the near future.
In warmer climates such as Texas, Arizona, South Carolina and Florida, the appreciation opportunities are even greater, as 75 million baby boomers are expected to retire in the next 15 years.
Home buyers that are fortunate enough to qualify to purchase today will enjoy the benefits of substantial appreciation, coupled at least for the short-term, with low mortgage payments resulting from historically low interest rates.
There may never be a better time to buy!