Consumers are Optimistic About the 2015 Housing Market

There are many factors that predict a great housing market is to come, and consumers are optimistic about the 2015 housing market.  Job growth, coupled with low mortgage interest rates, and easier credit access can only mean one thing – a busy housing market this year.  Many houses are still quite affordable and prices are rebounding which makes for an industrious real estate market.  Why are consumers so upbeat with the housing industry?

Foreclosure inventories are on the decline and home sales are closing the gap for a normal market. Inventory is at approximately 4.5 months which is “normal” for any real estate market.  It is a tremendous opportunity for builders to “dive into” the housing market and start building because inventory will get tight. Now is the time for home buyers to get out there and purchase a home.  Lower inventory means lower prices.

Lower prices will not last. After 13 straight months of price increases, the real estate market has now stabilized nationwide in pricing, and prices are growing at a normal rate.  However, home prices will continue to rise making it a seller’s market vs. a buyer’s market.  Now would be a good time as a buyer to buy a new home while prices are average, and interest rates are low.

First-time buyers are finally able to see the light!  These potential home buyers have been kept out of entering the market because of limited employment for college students, combined households, and credit difficulties. In today’s market, lending standards and down payment requirements are easing making it a perfect lending opportunity for first-time home buyers.  Young adults are getting back to work, and that will drive household demand.
Speaking of lending, both home buyers and builders are able to get loans a little bit easier than before because of lending standard changes. The increase in interest rates, though hindering some, will not be so drastic as to “lock out” parts of the real estate market to certain buyers. Borrowing costs which are traditionally the highest in residential lending are lowering as firms compete for potential finance customers.
According to Thomson Reuters Data, “In the first quarter, 70 percent of mortgage lenders are reportedly expecting stronger loan demand over the next three months.”  If you want to lock in a low mortgage rate, you still can — but don’t wait, because rates will ultimately rise this year.

Wage increases have also finally come to fruition and this leads to solid job growth which will strengthen the housing demand, making it a big catalyst for homebuilders. With the increase in the minimum wage and the first increase in regular wages seen since 2007, wages are going up which means buyers will be able to afford more home for their money. Buyers who feel more financially secure will form new households and transition from rental to ownership.

All of this indicates it is the right time and opportunity to purchase a new home.  At Bedico Creek Preserve, a master planned subdivision in St. Tammany Parish, we have seen a phenomenal demand for lots, homes, and building custom homes.  Our clients are eager to invest in our community with one of our neighborhoods selling out in just over 1 year.  Bedico Creek has since developed lots ready to build in, one of which is a builder-exclusive neighborhood of homes for sale called Cypress Crossing.

At Bedico Creek Preserve, we not only sell new custom homes, but we also sell a unique lifestyle just minutes from shopping, dining, and entertainment in the mall district of Highway 21 and easy access to downtown Covington, Louisiana.  Our Conservation Community is developed so that our new homes built as well as our amenities are nestled among and around the green spaces, waterways, and natural habitat.  We have designed and built hiking and biking trails that wind throughout a wildlife preserve so that when you move into our subdivision, you get to enjoy all that nature has to offer while being able to easily get to your place of work or even downtown New Orleans. If you have not had the chance already, come Visit Our Community or Contact Us at 985-845-4200 or E-mail Info@LiveBedico.com.

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