Check out this great article from CNBC about some of the upcoming trends we can expect in the housing market in 2015. Probably the most noteworthy are the new First-Time Home Buyer programs that will only require 3% down. There are also state and national grant programs to assist with the down payment and the closing costs.
An increased number of “For Sale By Owner” properties are expected. Even if you are already working with a real estate agent and come across a FSBO, most sellers are still more than happy to work with real estate agents who bring them a potential buyer. Do not hesitate to let your agent know about any FSBOs that you come across. Most often it is the seller that pays your agents fees.
Don’t forget to contact me to find your dream home in the mountains!
5 things to watch in housing in 2015
Damian Maldonado, co-founder of American Financing Corp.
The housing market has, by many measures, turned a corner. With the potential for interest rates to move higher, there is much to expect in 2015. Here are five trends to spot:
1. A last call for refinancing.
This means the window is starting to close for refinancing. This is the last call for anyone with a higher rate who has not yet refinanced. This is particularly critical for homeowners who took out an adjustable-rate mortgage.
Buyers who have been sitting on the sidelines should consider how rising interest rates could impact their monthly payments and purchasing power.
2. 3% down payments
In early December, Fannie Mae and Freddie Mac announced conventional loan down payment programs that allow first-time buyers with good credit to qualify for a fixed-rate mortgage with a 3-percent down payment, rather than 5 percent.
There are stipulations to qualify for the program: Borrowers must meet first-time buyer requirements and they must reside in the home.
There are many states as well as national programs, which offer grants that range from 1 to 5 percent to be used for a down payment or closing costs.
And remember that smaller down payments mean you will pay mortgage insurance in addition to your mortgage payment each month.
These easing loan standards will allow more first-time buyers to enter the market.
3. Millennials may move from being renters to buyers
However, 2015 is a year when millennials are likely to become buyers. Rising rents, available housing stock and life changes such as marriage and children will mean that it will make more sense for millennials to become first-time homeowners.
The job market is stronger now, and rents are only going higher. The monthly outlay for rent in many cities can often be more than a monthly mortgage payment, making owning more appealing than renting.
4. Foreclosed homeowners find relief
That could definitely begin to trigger an uptick in new home buying.
5. More ‘For sale by owner’ signs
Sellers have become savvy the past few years by using online real-estate tools such as Zillow to price their and list their homes.
I’m seeing an increase in “For Sale by Owner” efforts recently, and this trend can expand beyond the fringes. People are trying to reduce their fees.