Why 2015 Could Be Housing’s Best Year Since 2007
Even though January and February were lackluster at best, experts are saying that they expect 2015 to be the best time for home sales and new construction in more than eight years. Here’s why:
- Labor markets are improving: more than 3 million jobs were added between February 2014 to February 2015, marking it the fastest pace for growth experienced since 2000. This means that wages are growing and income is rising
- It’s looking up for millennials: those ages 25 to 34 have already begun to see prospective job availability improve significantly
- Rising rents: rent costs are predicted to rise 4% or more this year. This means that for many, homeownership will make a lot more financial sense. Especially now that home price appreciation levels have tapered off quite a bit from what we saw in 2013 and 2014
- Expanded credit: with lending loosening its reins a little—allowing more 3% down programs to be utilized—and mortgage credit expanding, buyers should have an easier time qualifying for lending than in years past.