The 2015 real estate market has been seeing considerably interest. Since early 2014, investors have been purchasing property in large quantities. Companies and foreign investors, in particular, bought foreclosed properties in bulk. This resulted in a cash injection in the real estate market, and a slow climb out from the mortgage crisis of 2009.
The construction industry is also improving with more than one million homes have become available in 2014. This is expected to increase in 2015. Large investors have dropped out and the market is open to first-time home buyers as well. Industry watchers like Jeff Adams state that 2015 could be the year of first time home buyers due to several factors like:
Large Investors Out
As the dollar has increased in value, large investors and foreign buyers have left the market. For them, investing in US real estate is no longer affordable. As the US domestic market strengthens, employment has increased and young buyers now earn enough to think about buying their first home.
Boomerang Buyers Are In
The term ‘boomerang buyers’ refers to those homeowners who lost their homes in the mortgage crisis of 2009. As seven years have passed, most of these homeowners can have their credit histories wiped clean of the bankruptcy and foreclosure. Now, these homeowners have good jobs and double incomes. They are returning to the real estate market and actively considering buying homes.
Credit Unions Are Lending
Even if large financial institutions are not ready to lend, small credit unions are relaxing their lending criteria. Young couples and small families now have a better chance of getting affordable mortgages immediately. With an affordable interest rate, it is now possible for boomerang buyers, first-time buyers and real estate investors to find affordable property.
Density Areas Have Changed
Earlier, most investors preferred large cities. Even first-time home buyers wanted property in large cities as they could commute to work, send their kids to school, and enjoy a good nightlife. However, large cities have now reached their capacity in terms of housing. For first-time buyers, properties are going to be too expensive.
There is good news though as density areas have changed. In an effort to provide affordable accommodation, metropolitan cities now encourage satellite towns to expand. For example, Los Angeles is a town with flaring real estate rates. However, small areas like Hancock Park, Culver City, and Los Feliz are now showing tremendous growth. Real estate in these areas is affordable and the towns are still close enough to LA so that owners can commute.
As the market continues to improve, Jeff Adams #1 Real Estate Trainer recommends that you start researching the market right away. As a first-time buyer, you should invest in an area that will appreciate in value over time and ensure good returns. Mortgage rates are still low but by the end of 2015 the rates could increase to 5% or more. Young buyers should consider investing in their first home right away before rates increase and the market becomes unaffordable.
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