6 Housing Market Predictions for Asheville in 2015
The U.S. had the best economic year in 2014 since the recession in 2008-2009 and 2015 looks even better. With an accelerating economy and job growth here in Asheville and across the nation we have a great feeling about 2015.
Data taken from Realtor.com Chief Economist Jonathan Smoke @ Realtor.org. The Asheville Area Chamber of Commerce & The N.C. Mountain MLS.
- Millennial Buyers Hit The Market: The millennial generation is beginning its ascent. Yes, they have faced huge challenges in the job market, but employment is improving, and older millennials are planning ahead. According to the National Association of Realtors about 65% of first-time home buyers are part of this older millennial group (ages 25-34), these young adults are at an age when many marry and start families. Of the millennials who are buying a home, 86% indicate that their motivation is a change in family size. More than two-thirds of household growth in the next five years is expected to come from millennials, according to Realtor.com Chief Economist Jonathan Smoke. This generation is bigger than the baby boomer generation, so even though its youngest members will be only 15 in 2015, the market is only beginning to feel its impact. Full article @ Realtor.org.
- Home Prices will slowly start to appreciate in the greater Asheville area: Home prices in the city of Asheville have increased nearly 5% from 2.3% in 2013 and pace of home sales has increased 4.6% over last year. According to our Chamber, Asheville area job growth is outperforming the nation and most of NC. Our unemployment rate is 4.9%, down over 1.6% from last year. We will likely see improving sales pace and more appreciation in Buncombe County and across WNC depending on neighborhood, condition of house and other factors. According to our MLS the sales trend is pointing upwards and we are looking forward to a strong 2015.
- Credit problems/New Changes May Make Getting a Mortgage Easier: If you have had past credit problems or can’t save up enough to cover a large down payment, Fannie Mae and Freddie Mac may have just cut you a break when it comes to getting a mortgage. Stricter credit score limits, large down payments and even heavy paperwork requirements have kept many would-be borrowers from buying a home in recent years, but new rules put in place by the government-sponsored enterprises may change that. Realtor.com/blog.
- Mortgage Rates Will Head Back Up Later in the Year: The flip side of the improving economy is that mortgage rates will head up again. We’ve had a great run, but the honeymoon is over, and it’s time to settle in for a relationship that balances job growth with higher-but-still-reasonable interest rates. The Federal Reserve has indicated it will increase the federal funds rate—which has an indirect but significant effect on mortgage rates—next year. The rate has remained near zero since December 2008. Although the Fed might wait as late as early 2016, realtor.com® Chief Economist Jonathan Smoke suggested the increase will come in mid-2015, and mortgage rates will increase ahead of the Fed’s move. “Our forecast for housing assumes the 30-year fixed rate will reach 5% by the end of 2015,” Smoke said. “The one-year adjustable rate will likely rise less if much at all, and accordingly, we are likely to see a shift into more adjustable and hybrid mortgages over fixed.”
- We Will Close Out the Foreclosure Crisis: It’s been seven years since the housing bubble burst and foreclosures skyrocketed, but in 2015 we’ll see the end of that era. Already this year has seen a major decrease in foreclosures and short sales.
“We are on pace for foreclosure inventories to end 2014 down more than 30%, and next year should see a slightly greater decrease as foreclosures fall to normal levels,” Smoke said. Full article @ Realtor.org.
- Builders Will Break New Ground in Asheville & Nationwide: Although total housing starts (construction on new housing units) barely broke 1 million in 2014 and was driven by multifamily homes, Smoke noted the pace will pick up in 2015 and shift in focus.
“We are forecasting 16% growth in starts, driven now more by growth in single-family starts, which we are expecting to grow 21%,” he said. In Asheville, we had a 5.3% decrease in number of residential building permits over 2013 (1061 vs. 1120 in ’13), we expect to see more housing starts in 2015, as there is a great need for new construction & solid inventory in and around Asheville and Buncombe County.
Happy Holidays from all of us at DixonPacifica Real Estate.
Wishing all of you a joyous Holiday Season and a healthy & prosperous New Year!
DixonPacifica Real Estate is Hosting The Asheville Downtown Member Mixer
The Asheville Downtown Association Member Mixer is Today from 5:30-7:30 and we are hosting it! Come on over and enjoy free wine, beer and snacks! #Asheville #ADA
Top 10 Reasons To Sell During The Holidays
- Fewer homes on the market = Less Competition– Many home sellers like to wait until the “hot” selling season to put their home on the market. In Asheville, like most places, the big selling season is in early spring. But why not get a jump on the competition? When housing inventory is low, buyers will appreciate a home that is competitively priced and in tip-top showing condition.
- Holiday buyers are serious buyers! You will waste less time showing your home to unqualified buyers, because buyers who look during the Holidays are serious about buying!
- Most people, including buyers, are happier during this time of year. Happy home buyers who need to move are attracted to homes that are warmly decorated and inviting.
- Holiday decorations will increase curb appeal. Many Asheville neighborhoods decorate and light up their entrances and their homes during the holidays.
- Your home may look its best during this time of the year. The Holiday smells & decorations of your home might invoke warm fuzzy feelings for a potential buyer.
- Some buyers may prefer to buy for tax reasons before the year ends!
- More time off to look at homes! Home buyers may be able to take a little more time off during the holidays to look at homes.
- Become a non-contingent buyer! If you sell your home during the holidays, you will be a non-contingent buyer – when it comes time to buy your next home! Few things hurt a home buyer’s bargaining power more than being a contingent buyer – meaning you must sell your current home in order to buy your next home.
- You are in control! If you are worried about selling during the holidays because you don’t want to move out of your house before the Holidays are over, you don’t have to. You are in control! If you don’t like the terms of an offer, you don’t have to sell your home. Or, even better, you might be able to work out a rental situation so you don’t have to move until after the Holidays.
- Realtors® at DixonPacifica Real Estate are working during the holidays! We are WORKING during the holidays. Many buyers and sellers are purchasing during this time of year, so we make ourselves available.
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