As the housing market recovered following the Great Recession of the mid 2000s, home prices and real estate values in several areas the United States increased. In fact, according to RealtyTrac, the average sale price of single-family homes and condominiums in October were at the highest they have been since September 2008.
The temptation of the foreclosure housing market in addition to price appreciation created ideal real estate market trends for investors willing — and able — to pay cash. This made it difficult, if not impossible, for traditional buyers to compete.
According to real estate experts, that will soon change. 2015 is slated to be the year of affordable and balanced real estate market trends across the country as the real estate industry as a whole makes a return to post-recession normalcy. Zillow.com predicts home value growth will slow from 6 to roughly 3% per year, making real estate less appealing to investors.
“It’s been a tough market for buyers,” Stan Humphries, chief economist for Zillow.com said. “I think it’s going to get easier in 2015. Negotiating power will move back to buyers and away from sellers. It will be a much more balanced market.” For example, too many buyers and not enough inventory, or vice versa, creates an unbalanced housing market.
The option-filled real estate market trends for 2015 means real estate agents will be busy. With more available inventory and less competition from large investors, traditional home buyers may become pickier and more willing to pass on a property they feel isn’t the best fit for them.
Also, it’s predicted that millennials (generation Y) may enter the housing market foray. Many millennials (largely college graduates between the ages of 25 and 34) have chosen renting over home ownership due to hefty student loan payments and poor credit. However, Gen Yers yearning for the stability that comes with “settling down,” may become the largest group of homebuyers in the new year, surpassing Generation X.