Happy 2015! Market Predictions

Posted: January 14th, 2015 by Brad

We’re optimistic it will be a happy new year. The economy continues to pick up steam as the job market strengthens and oil prices plummet. Of course the only constant is change and our market is dynamic. The following are our predictions for the year ahead for our regional real estate market:

1) Foreclosures – This segment of the market reduced by 30 percent for 2014. We will continue to see foreclosures dwindle to normal levels as the market continues to strengthen.

2) Affordability – Upward pressure on rents and home values will continue, though not as robustly as in 2014, with overall strong demand for housing region-wide

3) Population Growth – Our region will continue to get “cozier” and more traffic-congested with a continued increase of people moving into our area for opportunities and quality of life. Our regional council is planning for one and a half million more Puget Sound residents by the year 2040.

4) Mortgages – We foresee interest rates will resume their upward trend, despite a recent dip to near record lows. We’re highly likely to see the 30-year fixed interest rate reach five percent by the end of 2015. (Yes, we know we predicted that last year. We’d like to think we’re ahead of the curve.) The recent dip in mortgage interest rates is due to reduction in oil prices and the subsequent impact on the 10 year treasury note. Whether mortgage lending guidelines loosen still remains to be seen; they became tighter during 2014.

5) Housing Starts – We predict significant growth compared to 2014 (by at least 15 percent).

Wondering what your home is worth today or just curious as to how the market is performing? Give us a call (866) 766.7325

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