What do I predict for 2015? In this tumultuous world, each day brings surprises no one would expect. However, I DO know this:
INTEREST RATES are historically low. There has never been a weak real estate market in a low interest rates market.
INVENTORY in the St. Charles/St. Louis area is low. Builders have acknowledged this as evidenced by all the new construction developments, as well as buyers snatching up residential lots.
The MIDDLE CLASS is feeling an uptick in their net worth as home pricing rebounds and equity markets soar.
ENERGY PRICES are the lowest they have been in years, providing the equivalent of a "national stimulus".
EMPLOYMENT strengthens, although a weak energy market could result in job losses. Big cities (St. Louis) are the centers of job creation.
CONSUMER CONFIDENCE is the highest it has been since 2007.
So what does this mean for the local real estate market?
- The threat of rising interest rates will probably prompt buyers to make decisions.
- Rising rents make buying a viable alternative.
- High-end closings on homes from several months back will likely boost average pricing upwards.
- Quality will be a powering force for everyone.
- The biggest question for the 2015 real estate market is:
How deep is the Buyers' pool?
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