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Predictions for Residential Real Estate Market in 2015

- Avalon Exeter in Boston

D. Sidney Potter of the Huffington Post projected real estate for the year of 2014 and all predictions were 85% correct. So we decided to take his predictions a bit more seriously this time around, and we advise that you do, too.

Here is a compilation of his predictions for U.S. Real Estate in 2015 from the Huffington Post:

• Mortgage rates are currently at 4% and are expected to increase by 100 points/1% on a 30-year fixed rate mortgage(4>5%)—to avoid the increase you should get a 15-year fixed rate which will drop it by 100 poins/1% (4>3%)
• Home appreciation is still decreasing in the residential market, yet at a very minimal amount – 100 points – opposed to last years steep decrease of 500 points.
• Tract home development will have an 18-20 percent increase
• ibeacons will be more relevant to consumers – “It’s like your mobile device gets a pop-up message when you pass a store that was a beaming device attached to the outside of its establishment. This technology works similar for home shoppers that are cruising through neighborhoods to see what’s on the market, or actually attending open houses. When a realtor attaches one of these beaming devices on their real estate signs, it alerts a passenger driving by of the homes amenities, a price reduction, or special financing terms. When the home shopper enters the home, it gets even more personal. Walk into the kitchen and get a pop-up message that the new granite counters were just installed. Walk into the bathroom, and learn of the new HGTV-esque remodel. You get the picture.” [Huff Post]
• California and the Southwest will lead in home appreciation
• 2015 will be a mysterious year for real estate – because most homes in the US are at or above pre-bubble levels be prepared to expect the unexpected

So hold on for the ride, folks; this year is predicted to be full of surprises!