“Since the recovering process are desiccating the supply of affordable homes in most of the major cities, shoppers are still optimistic in terms of buying homes with the start of the near year 2015”
How 2015 will be for real estate? With the start of New Year 2015, all the people who want to sell their home or renters who want to have perfect renting places are stuck with this burning question. Though, there is no crystal clear answer to this question but anyone who claims to have answers will probably have some concealed schema. Let’s have the closer look and consider all the potential factors.
Keeping eye on the recovery process- Where it’s going?
Recovering process is still in progress. It has been almost three years since the costs bottomed out in 2011. And, still the recovery mode is not stable, it’s under route, with recovery process is still slow, the prices of housing are no longer radically undervalued and the market of investor is still drying up.
The rising prices have also leave a serious impact on the various available opportunities. Thus, they are searching for some additional options. However, being optimistic, we are still sitting with the hope that things will be better soon. Regardless of the crawling rebound effects, there is a ray of something positive. Consumers are very confident that 2015 will bring some improvement over 2014.
Considering the millenary factor
Undoubtedly, the purchasing power of the Millennial demographic packs a serious punch. And it seems that homeownership still plays a key role in the UK dream, especially among young adults — an overwhelming 93 percent of young adult renters responded yes when asked if they will be purchasing a home someday.
Making tough choices
According to Elizabeth Archer of Ukiah, CA- The number of homes for sale she has in the market within her price range is discouragingly low. She also added that- “I am tired of renting but still I love the area and I am not willing to look anywhere else and hoping for the time when some affordable houses will be there for sale this spring.
Archer is experiencing a pervasive affordability issue that is termed as the “Millennial Mismatch”. From over 100 major metro, there are two notable exceptions where millennials presently live and can buy. These two cities include- Oklahoma City, OK, and Baton Rouge, LA. Both these cities have the high population of millennials and better than the average affordability.
Where on the one side, people are facing issues in finding jobs and affordable housing in their desired areas, on the other hands, consumers are feeling more hopeful. Further weighed down by weak construction growth, the housing recovery should play nicely with the complete economic upturn to have an impactful diversity.