Real Estate in 2014 & 2015 – What’s the Story?
The real estate market could really not have been better in 2014. The DFW market was crazy busy, with…
- Very few days on market for listed homes,
- Multiple offers on homes being the norm for buyers and sellers (not great for buyers, but great for sellers!),
- Mortgage rates continuing to be at or near historic lows,
- Big percentage increases in average home values (about 20%!) as described in this article, State of the DFW Market.
On a personal note, I was so thankful to have had my best year yet in 2014. Listings were selling extremely fast – almost 60% had offers within 24 hours – and my total sales volume was over $8 million. You can take a look here at my 2014 Year in Review…
It was a fabulous year, but notice I said “best year yet” about 2014? That’s because I’m gearing up for 2015 to be even better! As this new year begins, I’m ready to look into my crystal ball (while also stepping out on a limb) and make some predictions about what is going to happen in residential real estate this year. Here we go!
1) Mortgage Rates Will Increase. Rates have stayed at record lows for a good while now. In Texas, we’ve benefited from the national housing market (especially in California, Florida, etc.) still needing some help to absorb the remaining foreclosures, short sales and related slow markets. In recent months, the tide is turning and those markets are improving. This fact, in my opinion, means that rates are going to have to increase, BUT I don’t expect a big jump; I think it’ll be one percent at most. In terms of timing, I expect to see the rate increase occur in the late Spring months, prior to the Summer selling season, which is typically the prime time of the year for home sales.
2) North Texas Will Continue to Have a Strong Market. Here in the Dallas area, we have seen several major employers – Toyota and State Farm to name just a couple – choose to locate here due to our business friendly environment. This means we have thousands of employees moving here, and those employees and their families have to have a home to move into. When the economy is already strong, and growing, it means good things for the real estate market.
3) Three Buyer Trends to Watch. Three trends that I have seen and that I think will continue to become even stronger in 2015 are…
- LOCATION (e.g. in a certain neighborhood, near work, near family) is more important than SIZE of home,
- Paint and flooring are top-of-the-list IMPROVEMENTS of what buyers are willing to do when they purchase a home (anything else, sellers need to address prior to listing), and
- The great OUTDOORS is going to continue to be a big feature that buyers look for, as a way of visually/emotionally expanding the home’s living space, and as a way to relax and entertain at home.
I am so excited about the year to come, about all the people – singles, couples and families – I’m going to help “make a move” in 2015. Want to know more about selling your house, buying a home, or just about real estate in general? I’m here for you by e-mail, text, or the old-fashioned way by phone!