As we enter into the last quarter of the year, real estate analysts start reflecting and strategizing. The real estate market has done relatively well in 2015. Its early upswing reversed slightly as the year progressed to even out the market and seemed to normalize a bit as the ups and downs that have kept many analysts on the edge of their seats were less extreme.
Florida’s hardest hit areas have recouped much of their losses in home values, and trends show sales are continuing to move properties, like Coral Gables luxury homes, Weston luxury homes and other South Florida properties.
According to economists, mortgage rates aren’t expected to change too much through the last few months of the year, which coincides with annual slowdown often experienced in housing activity as the fall and holiday season keep buyers and sellers attending to other things.
Predictions are that 30 year fixed rates could climb up to just under 4.5 percent by the end of the year but probably not much more than that, depending on foreign markets and the Federal Reserve.
Other trends in housing to look for in the coming months:
- Shortage in Inventory: This has been an issue for most of the real estate markets across the country and analysts expect it to continue, even in the Coral Gables luxury homes and Weston luxury homes market. From existing home sales to housing starts, both types of real estate are staying low on availability and will probably continue to do so for the next few months.
- Increased Demand for Rentals: The rental market is expected to continue to grow, even as rental prices continue to climb. Many millennials are not ready to commit to or afford a real estate property that all their own, even if it’s not Weston luxury homes. Predictions are for the rental demand curve to continue to be strong.
- Less Cash Buyers: Foreclosures are not appearing on real estate rolls as frequently as they once did, and investors will less likely be engaged in slamming down cash deals because of this. There may be a few interested in continuing to play in the market because of the rental demand, but not as many as in years past.
- Ease on Credit Standards: Most analysts see lending standards to slowly loosen. It probably will begin to happen as this year moves to close, and is anticipated to continue through 2016. Acceptance of credit scores that are less than stellar will be happening more and more as the New Year progresses, or so say market watchers. In fact, lenders began working this trend back in 2014 were the market saw 33 percent of closed loans were for borrowers whose credit score was below 700, reported mortgage software provider Ellie Mae.
- Increase in Home Prices: The inventory shortage will cause prices on homes – beyond just Coral Gables luxury homes and Weston luxury homes – to go up. The home market can expect to see annualized price growth to rise 3 to 5 percent through the end of 2015 and into the beginning of 2016.
