Housing market predictions for 2015. #real #estate #photography

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Housing market predictions for 2015

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“The story is almost uninteresting when it comes to Seattle, because it looks like it’s going to be more of the same for 2015.” That is, buyer competition and rising prices, thanks to a strong economy.

— Stephen O’Connor, director of the Runstad Center for Real Estate Research at the University of Washington

“The story is almost uninteresting when it comes to Seattle, because it looks like it’s going to be more of the same for 2015.” That is, buyer competition and rising prices, thanks to a strong economy.

Photo: Aubrey Cohen, Seattlepi.com Staff

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Price increases will slow.

“I think we’re going to probably see prices continue to go up (in the Seattle area), but not as rapidly. The rate of appreciation for homes has already started to slow.”

— Stephen O’Connor, director of the Runstad Center for Real Estate Research at the University of Washington

“Seattle home prices started the year at an appreciation rate of about 15 percent, but the pace gradually slowed and we expect prices in 2015 to hover between 4-6 percent (appreciation). We see that as a good thing because if home prices keep appreciating in the double digits for too long, we could run into the same boom/bust market of years past.”

— OB Jacobi, president of Windermere Real Estate

“Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015.”

— Stan Humphries, Zillow chief economist

“Price gains slowed in 2014 and we’ll see more of the same in 2015. In October 2014, prices increased 4 percent year-over-year, down from 10.6 percent in October 2013. The slowdown has been especially sharp in metros that had a severe housing bust followed by a big rebound. Now, prices nationwide are just 3 percent undervalued relative to fundamentals. That leaves fewer bargains and scant room for prices to rise without becoming overvalued. What’s more, with consumers expecting 2015 to be a better year to sell than 2014, more homes should come onto the market, cooling prices further.”

— Jed Kolko, Trulia chief economist

Price increases will slow.

“I think we’re going to probably see prices continue to go up (in the Seattle area), but not as rapidly. The rate of appreciation for homes has already started to slow.”

Photo: Michael P. Farrell

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But homes won’t get more affordable.

“(D)espite slowing price gains, home-buying affordability will worsen in 2015 for two reasons. First, even these smaller price increases will almost surely outpace income growth. In 2013, incomes rose just 1.8 percent year-over-year in nominal terms, and a negligible 0.3 percent after adjusting for inflation. Second, the strengthening economy and the Fed’s response should push up mortgage rates.”

— Jed Kolko, Trulia chief economist

“Everybody anticipates interst rates going up next year.”

— Stephen O’Connor, director of the Runstad Center for Real Estate Research at the University of Washington

“(A)ffordability in Seattle is expected to improve further in 2015 as income growth really kicks in. There’s also an indication that lenders are going to ease standards just enough to put home ownership within the reach of even more buyers looking to purchase their first home.”

— OB Jacobi, president of Windermere Real Estate

But homes won’t get more affordable.

“(D)espite slowing price gains, home-buying affordability will worsen in 2015 for two reasons. First, even these smaller price increases will almost surely outpace income. more

Photo: Tony Dejak, Associated Press

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Rents will rise faster than home prices. But increases will still slow.

Rents “will continue to grow around 3.5 percent annually throughout 2015. As renters’ costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market.”





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