Expected Trends in Middle Tennessee Real Estate Market for 2015

2015/05/nashville-real-estate-300x178.jpgClose to the end of 2014, there were expectations that the housing market in Middle Tennessee was poised for growth. The recession in 2008 left the U.S economy in shambles but after years of sluggish but stable recovery, 2014 was the economy’s best year since the recession. As the economy continues to show improvement, income levels are experiencing growth too and economist as well as housing experts are expecting intensified interests in the real estate market in 2015.
The improvement in the economy in 2014 has raised the hopes that the real estate market will “bounce back” in 2015. What are the likely prospects for homeowners as well as potential homebuyers? If you have your eyes set on the housing market in middle Tennessee, here are a few predictions and trends the Greater Nashville Association of Realtors believe will become a reality in the year 2015.
Relaxed lending standards. Freddie Mac and Fannie Mae announced in December 2014, that it is their intention to reduce the down payment mortgage from the usual 5 percent to 3 percent. The major reasoning behind their offer is that many would-be buyers do not have the means to save for large down payments. With this new program, credible first-time buyers who were unable to enter the market can now purchase a home.
Increase in Mortgage rates. With the improvement in the economy, the Federal Reserve has stated that the federal funds rate will increase in 2015. The federal funds rate has a significant effect on mortgage rates, which have remained at extraordinary lows over the past few years. Now is the right to refinance your mortgage or time to buy a home. Act on it now, because the rates are likely to rise as the year advances.
Millennials will come into the market. The continued improvement in the economy will result in the expansion of the job market. As the job market expands, millennials will begin to form households and the demand for housing will increase. Millennials (24-34 age group) began entering the market in 2014 as the economy and job market improve; they will get more involved in the real estate. Furthermore, with the prospect of lower down payments, 2015 will definitely be the best time for young people to get into the housing market.
Housing inventory will increase. Production will increase in 2015 as builders have created the opportunity for the increased interest in residential property. What this means is that this increase in inventory will help improve consumers’ options, which is another possible motivation for first-time buyers.
The expectation then is that the Middle Tennessee real estate market will remain strong in 2015, and will continue its growth, which started in 2014. Are there any indications that the expected trends have become a reality? Definitely, the word is out that the predictions by the housing experts have become a reality. The middle Tennessee real estate market is generating a lot of interest as potential homeowners rush in to purchase homes in the area.