Spring has sprung and change is upon us. But more than longer days and warmer weather, changes in the worlds of homebuilding and real estate are happening, too. With experts predicting a surge in the market, it's best to be prepared on what to expect, instead of going in blind. Here is a sneak peek of things to keep an eye out for this Spring season:
Crowded Open Houses: Inventory has been limited for the past few years. For 2015, there will be more listings and more new homes at that. More houses have appreciated, leading to the increase in listings. This will create a competitive edge when it comes to "pouncing" on a sale. Experts predict crowded open houses and suggest using home sale sites as an alert system. The sooner you see a property, the better you can expedite the decision process.
Higher Prices: For 2014, the median house price rose 5.8%. Prices are expected to rise, but not too much more. Because more houses have appreciated, prices have increased now that homeowners have regained equity. This makes being prepared and ready to make a decision even more important. By being updated on market values, buyers will be able to have a smoother search process.
Labor Market Impact: There were more jobs added in 2014 (3 million) than there has been since 1999. This steady and consistent growth within the job market means more paychecks and more people that are looking to buy. The unemployment rate is the lowest it has been, at 5.5%, since May of 2008. But because wages are still lagging, despite so many additional jobs, new homebuyers might still hold off for a while.
Millennials on the Move: Millennials are on their way to overtaking Gen X as homebuyers by the end of 2015. The assumption has been made that Millennials are hesitant to buy because of financial reasons, but that isn't it. While this generation has shown patterns of putting off marriage and starting a family for longer than those before it, it isn't hindering their share in the market. According to the National Association of Realtors, millennials accounted for the largest share of homebuyers in 2014 at 32% and in 2013 at 31%. Experts aren't expecting anything less for the upcoming calendar year and how much of the market they will control.