We like to start out the year by discussing the top 2015 housing prediction: The return of the 1st time home buyer!! NBC, CNN, Zillow.com, Realtor.com, economists and other industry experts, they're all predicting the same thing.
Due to a few key factors like; Increase in employment opportunities, rents rising faster than incomes making a mortgage seem more favourable, looser lending qualification and having loan products with smaller down payments ... will all empower younger buyers to return to the market, primarily the millennial. Millennials are those born from around 1980-2000. Millennials are predicted to be the largest purchasing group, accounting for about 2/3 (65%) of household formation in the next five years for the 1st time home buyers. While the majority of all housing activity will be driven by the baby boomers preparing for retirement.
Realtor.com is predicting existing home sales to increase by 8% where the Association of Realtors are predicting a more modest increase of 5%-7%. New construction home sales are expected to climb to about 13%. New homes builders are coming out with more products designed for the millennial buyer of smaller, no-frill homes. To see ALL new construction homes from the big builder to local builders in the Reno and Sparks area please check out out New Construction page. We're the ONLY site that has all the information (pricing, hours, HOA dues, preferred lender and viewable models) for Reno and Sparks on the internet.
Mortgage rates are historically low right now are projected to start rising the middle of 2015 due to the Federal Reserve target rate of 50 basis points. By the end of 2015 Realtor.com is expecting mortgage rates to be closer to 5% for your fixed rates loans where CNNMoney is predicting slightly lower ranging from 4.5% to 4.75%. Do you think you might be ready to purchasing a home? Please take some time and fill in the Mortgage/Loan Calculator at the bottom of the side navigation and see how much home you can afford. We have taken into account taxes (use a figure 1.05% of the purchase price as an estimate if you don't know exactly), PMI (this has to be paid if less than 20% of the purchase price is put down at closing) and insurance (estimate $200 for every $100k financed, you'll be slightly above but it's better to over calculate slightly than under calculate) into our calculator so you can see down to the penny what your monthly payment will be.
If you have any questions about buying a home, selling your home or looking for answers about anything real estate related, please feel free to contact Reno Sparks Tahoe Homes anytime!!
Statistics from Realtor.com, Association of Realtors, Zillow.com, CNNMoney, NBC, BofA