The forth quarter of 2014 came in strong with the fastest paced economic growth in (GDP) Gross Domestic Product since the forth quarter of 2003. This is a strong sign for our economy for the New Year. Due to the signs of a strong economy there is already some chatter of interest rates increasing in the New Year. Since interest rates are currently still at all time low’s this is a great time to buy and lock in a lower rate while you can. (First time buyers and people wanting to move up to larger homes will benefit as well by being able to afford more with lower rates)
Unfortunately, none of us have a crystal ball to exactly know what the future brings, economists use many calculations to try and predict how 2015 will go. By some of the best the predictions for the housing market are:
1. Housing market will continue to strengthen
2. Home prices will rise at a much slower rate
3. Interest rates will creep up
4. Lower demand for homes due to new building starts (more new structures)
5. In general the housing market is not going to get much better or worse.
With this kind of status-quo prediction I would say if you are planning on selling your home go ahead, don’t wait it’s not expected to get much better. And, if you are planning on buying go ahead as prices won’t go much lower (if at all) and interest rates (by all signs) may reach up to 5% this year.
Looking at the
stats for the last several years home prices tend to decrease a little in the
last quarter and then begin to rise a little in the first quarter. The movement on price is so small it really
isn’t enough to make a large difference.
(Also, keep in mind it varies from area to area and price point to price