2015 Is The Year To Buy / Sell
It's 2015! We often find ourselves wondering how changes in the market are going to influence our futures, especially when it comes to buying or selling a home. Below are a couples of things we to put into consideration for this year of real estate.
Make Way 2015! The Millenials Are Buying Homes!
Homeownership is very desired by most Americans, top websites predict this year will be the year of the millennial generation to start buying homes. As many people choose to rent longer, demands for rental properties continue to increase driving prices of rent to soar higher and higher.
Those in the 23-34 year old range are becoming more and more optimistic about their abilities to be able to afford mortgage payments and place down payments on a home of their own because of this increasing demand for rental properties.
Builders are also beginning to better cater to the millennial age buyer (a significant advantage for the buyer) by building more homes suitable to their lifestyles, such as condos and townhouses, which are more affordable. These more affordable properties are making it easier for the buyer to negotiate price, making homeownership more attractive.
New Construction Homes Are Booming!
Home builders like D.R. Horton have been building new developments all over Hawaii to meet the demand of buyers. New construction is so high in demand in Hawaii, that buyers will camp outside with their buyer agents outside the sales office! The crazy things is, the construction on those homes, haven't even started!
An upside to new construction on a tight inventory to buyers, is that as more homes are hit the market, prices will gradually decrease.
Act Fast! Real Estate Prices Are Rising!
In other words, homes are not going to be this “cheap” for long. Low interest rates, such as those hovering around 4%, are beginning to disappear and the median prices of homes continue a gradual rebound since their 2011 lows, although it is not predicted that home prices will be as high as they have reached in the past.
University of Hawaii Economic Research Organization predicts that the median price of a single-family home could reach $773,800, an 8.9% increase in 2015. Condo prices are also predicted to increase 6.2% to $376,300 even though they reached record highs last year.
Buyer! What Does This Mean For You?
So what does this mean from a buyers perspective? It means that 2015 could be the year to finally purchase that home in paradise.
Are you ready to take advantage of the market this year? Which one are you?