The real estate industry is definitely moving past its recovery and into an upswing.
The outlook for 2015 is solid and steady. Home prices have risen in 2014—but not as quickly as expected. Home prices rose in 225 out of 276 cities over the past year equaling 81.5% according to a study done by Clear Capital, a company providing real estate data and analysis.
The sluggish beginning to 2014 is in part being blamed on a lack of inventory meaning that there simply were not enough houses on the market to sustain large growth for the industry. The sluggish start to 2014 is being blamed in part on a lack of inventory, meaning that there were not enough houses on the market to sustain a large growth for the industry.
The rise in housing prices should shake loose some needed inventory for the market in 2015 as more homeowners that had been underwater find themselves back on the right side of their mortgages.
CoreLogic reported that almost 3.5 million homeowners were lifted out of negative equity between the end of 2012 and mid 2013. This number has continued to rise throughout 2014 and is expected to see growth throughout 2015. Many of these homeowners are eager to put their properties on the market is expected to help create the needed rise in inventory.
States that should see the highest share of these equity turnarounds include: Nevada, Florida, Arizona, Michigan, and Georgia. These states ranked the highest in past years for underwater mortgages per capita.
"We're in the home stretch of getting through the foreclosure crisis," says Daren Blomquist, vice-president at RealtyTrac, which monitors the foreclosure market. Blomquist predicts crossing the finish line of the foreclosure crisis in early 2015.
To sum up the expectations for the market in the near future:
"The housing market is beginning to roar back…The pending contracts also show robust gains, implying home sales will further rise over the near term. The outlook, therefore, is for housing starts and new home sales to rise comfortably this year and the next. Home prices will rise, though at a manageable single-digit rate of appreciation over the next two years." ~ Lawrence Yun, Chief Economist and Senior Vice President of Research at NAR
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