08 Apr Steady Real Estate Trends for 2015
As the weather warms up, so does the housing market, and experts say this year’s spring selling season is shaping up to be an active one. Whether you’re buying or selling, The Fiscal Times shares some of the top trends to keep an eye on in real estate. Here are some highlights of their findings:
Prices still rising. Home prices nationwide rose by 5.7 percent in January. In most markets across the country, gains of around 5 percent are seen as stable and sustainable growth, a welcome change after years of roller coaster changes.
Low mortgage rates. Rates are expected to rise as the year progresses, but for now these rates, just under 3.7 percent, are really at very low levels. It’s best to play it safe once you’ve got a closing date and consider locking in your rate.
Buy now. Soaring rents in recent years have made buying a home much more affordable than renting one. Nationally, U.S. renters spend an average of 30 percent of their income on rent, versus just 15 percent of income on mortgage payments, according to Zillow.
Easier lending. Fannie Mae and Freddie Mac have introduced new lending programs that allow borrowers to put just 3.5 percent down on a home, which makes it a little bit easier for first-time buyers to qualify for a home loan.
Smaller and greener new homes. The average new home in 2015 was expected to be about 2,200 square feet, or 10 percent smaller than the average new home five years ago, according to the National Association of Home Builders. Millennial buyers and downsizing boomers want a smaller carbon footprint and a more eco-friendly home with energy-efficient windows and plumbing.
You can read the rest of the trends here.
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