As with most things economic, this is crystal ball territory.

But here at KateDavidHomes we consume of a variety of traditional (Kate) and social (David) media sources so we’ll bravely give you our own opinions on what kind of year it will be.

Millenials in the market. First time homebuyers, and parents who want to help them with a down payment, will be getting more breaks in the coming year.  Fannie Mae, for example, is now offering 3% down payment mortgages to qualified (read good credit and steady income) first-time buyers. With rents rising astronomically in and the job growth continuing, it’s predicted that Millennials will finally start entering the real estate market.  Given the way affordable housing is evaporating in Nashville, the move can’t come too soon.

New build inventory. One of the biggest challenges Realtors face right now is finding properties for buyers.  Inventory has been tight which results in a “sellers market” and horror stories about properties that are only on the market for a nanosecond (it’s true, it’s true!) and are snapped up for top dollar.  We’re now hearing hopeful news that builders will be producing more inventory and that new construction will help create more options for buyers this year.

Rising interest rates. You’d have to have been living incommunicado/under a giant lead-lined rock to not know that EVERYONE believes mortgage interest rates will start going up—possibly by the end of 2015. While we’re not talking double digits, after enjoying mortgages with unimaginably low interest rates for so long it will be a shock to get to 5%.  Which will still be affordable.  If you don’t want to miss the tail end of what has been the mortgage interest rate equivalent of $1.00 gas, buy a house or refinance now.

 Questions, thoughts on the above or anything related.  Give us a shout and let’s talk real estate.