Last year’s Real Estate market was primarily driven by low inventory and an abundance of buyers. In 2014, home prices rose 6.1% in Seattle and 8.7% in Bellevue as Sellers took advantage of multiple offers and quick sales.
The buyers who were fortunate enough to purchase, did so at a 30 year fixed mortgage rate of 3.87% per Freddie Mac. That is very close to the historic lows of 2013.
With 2014 in the rear view mirror, we’d like to share with you what to expect in 2015.
- Housing Prices will appreciate at a stable 5 to 9 percent
- Rents will continue to rise, pushing more millennials into buying
- Housing inventory is expected to increase giving buyers more options
- Mortgage Bankers Association predicts interest rates to increase to 5% by years end
Inventory is still very low. In this low supply, high demand market, many houses are selling above their list price with multiple offers. With a seasonal upswing in inventory this spring, it will be advantageous for sellers who beat the competition and list early.
Mortgages are still cheap, but for how long? Interest rates could be the biggest wildcard in the housing market over the next year. With many experts predicting interest rates on the rise, buying now would allow you to afford more and save you a ton of money over the life of a loan.
New Federal Housing initiatives might also loosen up lending standards to help buyers. In 2015, Fannie Mae and Freddie Mac are both introducing mortgage programs that require as little as 3% down which will open up home ownership to millions.
As far as Real Estate lore, everyone knows “location, location, location”. Lesser known but equally important could be “timing, timing, timing”! Whether you’re a homeowner going through a life change, or a renter ready to take on the next step in your life, we would love to sit down with you and discuss your future!