Consumers are optimistic about what they’re hearing about what’s in store for the 2015 housing market. The long shadow cast by the housing bubble, which peaked nine years ago, is finally fading. Home prices are no longer significantly undervalued and investor demand is falling. According to a recent survey of American adults by CNN Money, consumers are optimistic about the future of the 2015 housing market.
According to the survey, consumers believe all real estate related activities will improve this year:
- 36% said 2015 will be much or a little better than 2014 for selling a home.
- Only 16% said 2015 will be much or a little worse. A difference of 20 percentage points.
- The rest of the respondents said 2015 would be neither better nor worse, or weren’t sure.
- More consumers said 2015 will be better than 2014 for buying, too.
- Not having a stable job has become considerably less of an obstacle; dropping to 24% this year compared with 36% last year, thanks to the recovering job market.
- Price levels and price changes are both approaching normal, foreclosure inventories are dwindling, and investors are pulling back.
- As the market improves, consumers believe we will see slower, more sustainable price increases and a healthier mix of home sales.
Experts agree with this optimism. “The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3% growth rate in 2015 — only the second year in the past decade with growth at that pace or better,” says Frank Nothaft, Freddie Mac’s chief economist.“Governmental fiscal drag has turned into fiscal stimulus; lower energy costs support consumer spending and business investment; further easing of credit conditions for business and real estate lending support commerce and development; consumers are more upbeat and businesses are more confident, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better-paying jobs, providing the financial wherewithal to support household formations and housing activity.”
That’s good news for anyone considering buying or selling their home. If you have been considering buying or selling in Sacramento, Placer or Eldorado County, now is the perfect time to go for it! I’m here to help with all your needs, and to keep you up to date. Just call me at (916) 747-7919 or email me at EAxelgard@gmail.com with any questions regarding the 2015 housing market.