Wow, November really flew by this year. It’s hard to believe that December is here already. At this rate, when we blink it will be a New Year. This being said, with December comes reflection and projection.
Let’s reflect, this year, what resonates with me is that it was odd to say the least. Looking back, for the real estate business it has been especially challenging. We have not had a year where we couldn’t predict the market because there were no trends that lead the way for us. The harsh winter weather carried into May so there was no momentum from a spring market to carry us into the summer months. We had overly choosy buyers, rising inventory, fewer first time buyers, fewer investors, more inventory coupled with more days on the market plus even more. You name it, it happened and we couldn’t predict what would happen next. What we did have this year were very low interest rates – stable house prices – inventory was plentiful but nowhere near historic highs yet we had a “different” year. In a year where buyers should have been coming out of the wood work, they stayed on the fence. There are many in the business happy to see an end to this year from a business perspective.
So, let’s talk about next year. We are expecting a strong spring market based upon what our top producing agents are talking about in our mastermind meetings. Many of them have buyers ready to buy homes, they have realistic sellers ready to put their homes on the market and rates will remain low through the spring market. We hit a low in first time buyers last year that we haven’t seen since 1987 but there are financing changes upcoming with lower down payment requirements and changes in regulations relaxing the tight underwriting standards we have had recently. These revisions will make first time buyers and Millenials a viable option that will help revive the housing market in the lower price points that will help the market flow up stream. We expect that the month’s supply of homes will remain between 3.5 – 4.5 months so sellers will need to be patient. Overall, we are optimistic that the real estate market will be strong in 2015.
Have a fantastic, safe and relaxing holiday season with your family and friends. In the meantime, if you have any questions or concerns about your situation, feel free to call me.