January 2015 Newsletter
I. Happy New Year!
II. Housing 2015: Four Major Market Predictions
III. Just Sold property
IV. Welcome the newest member of PHT
Happy New Year 2015!
Happy New Year from the Petit Home Team to you and your family! We hope your new year is filled with much success, love, and happiness. Thank you for working with us during the past year. We look forward to growing our relationship with you in 2015 and continuing to help with all your Real Estate needs!
Housing 2015: Four Major Market Predictions
When it comes to the housing market, 2015 may be the year first-time home buyers make a comeback. Here are four housing market trends economists and other industry experts expect to see in the year ahead.
1. Looser lending standards - In early December, Fannie Mae and Freddie Mac put new lending guidelines in place and started offering 3% down payment mortgages that will make it easier for more first-time buyers to qualify for a mortgage. Add to that a strengthening job market, and prospects look much brighter for young home buyers.
“It’s already begun that Millennials are going back into the market,” said Mark Zandi, chief economist for Moody’s Analytics. According to the Mortgage Bankers Association, sales of new homes are expected to climb by more than 13% in 2015, while existing home sales are expected to increase by 5%. A spike in the number of first-time home buyers should spark a chain reaction by enabling existing homeowners to sell their homes and buy more expensive ones, said Zandi.
“It’s already begun that Millennials are going back into the market,” said Mark Zandi, chief economist for Moody’s Analytics. According to the Mortgage Bankers Association, sales of new homes are expected to climb by more than 13% in 2015, while existing home sales are expected to increase by 5%. A spike in the number of first-time home buyers should spark a chain reaction by enabling existing homeowners to sell their homes and buy more expensive ones, said Zandi.
2. There will be more homes to choose from - Builders are ramping up production of smaller homes to accommodate these new entry-level buyers, said Stan Humphries, chief economist for Zillow. Homebuilder D.R. Horton formed Express Homes, to build no-frills homes ranging in price from $120,000 to $150,000, about half the average price of the homes it normally builds. Other builders, like LGI Homes and KB Homes are also targeting first-time buyers.
3. Home prices will become more affordable - With so many new homes slated to come onto the market, the supply is expected to loosen up and take some pressure off of home prices. That should improve affordability in some of the more out-of-reach metro area markets like Washington, D.C., San Jose, Calif., and Seattle. Plus, says Robert Shiller, the Nobel-Prize winning economist and co-founder of the S&P/Case-Shiller home price index, “home prices look somewhat expensive.” In fact, he thinks a decline in home prices is a “distinct possibility.”
4. Mortgage rates will move higher — at some point - If there’s any single market trend that real estate industry pros have gotten consistently wrong lately, it’s the direction of mortgage rates. But most do expect rates to rise at some point in 2015. In December, the Federal Reserve signaled that it would not raise the Federal Funds rate until the summer of 2015 or perhaps even later. Keith Gumbinger of HSH.com, a mortgage information provider, expects mortgage rates to peak next year at about 4.75% for a 30-year fixed rate mortgage. He doesn’t see rates rising much beyond 5%, which would still be “very favorable rate, historically.”
Just Sold!
100 Worden Ct.
Huntersville, NC 28078
Sold for $180,000
Spectacular 1 level home in Shepherds Vineyard neighborhood on a cul-de-sac street! Property boast 3 beds, 2 baths, open layout w/cathedral ceilings in great room, corner tile fireplace, eat in kitchen and 2 car garage. Large master bedroom with private bath. French doors in great room open to screened in porch and deck area. Separate workshop building with electric. Convenient Huntersville location!!
http://www.realtor.com/realestateandhomes-detail/100-Worden-Ct_Huntersville_NC_28078_M60767-80430
Welcome the Newest Member of Petit Home Team!
Please join us in welcoming the newest listing agent on Petit Home Team, Mike Tolbert! Mike’s area of expertise is property sales thanks to his long, successful history with Daimler Trucks North America, Okuma Machine Tools, and American Honda Motor Company. Mike is a wonderful asset to Petit Home Team and he is looking forward to introducing himself to you in the new year!
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