Lawrence Yun, chief economist for NAR®, forecasts that existing-home sales in 2014 are expected to be 4.9 million, and then increase to 5.3 million in 2015 and 5.4 million in 2016. He expects the national median existing-home price will rise 4 percent in 2015 and another 4 percent in 2016. His prediction is based upon more homes on the market, greater consumer confidence and continued pent-up demand.

“The improving job market has consumers feeling more confident, and the rebound in home prices is building household wealth for homeowners and giving them the ability to sell after waiting the last few years,” Yun said.

According to a recent article in REALTOR® magazine, 2015 should present first-time homebuyers with a good opportunity to jump into the housing market after largely staying away since the housing crisis but this prediction may not be true in all areas of the country.

“In 2015, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery,” says Jonathan Smoke, chief economist for REALTOR.com®. “If access to credit improves, we could see substantially larger numbers of young buyers in the market.”

The reemergence of first time buyers is one of several forecasts for 2015 made by REALTOR.com®, including:

• Millennials driving household formation. Households headed by Millennials are expected to see significant growth in 2015, particularly if the economy continues to make gains.
• Existing-home sales rising. Distressed properties will make up a smaller share of that growth as investor purchases continue to play a diminishing role in the market.
• Mortgage rates to inch up to five percent. Rates are expected to increase as the Federal Reserve increases its target rate. This could lead to an average 30-year fixed-rate mortgage of five percent by the end of 2015. (It averaged just under four percent in mid-December, according to Freddie Mac.)

REALTOR® magazine said housing affordability may fall slightly in 2015 due to home-price appreciation and rising mortgage interest rates, but any decline in affordability will probably be offset by an increase in salaries next year for many households. “When considering historical norms, housing affordability will continue to remain strong next year,” the magazine notes.

So if you’ve been sitting on the sidelines, 2015 may finally be your chance to jump into the housing market. With rates still near historically low levels and more homes expected to come on the market in the coming year, this may be your opportunity to find the home you’ve been waiting for. I’m ready to help. Please give me a call or send me an email and we’ll get started today.

• Do the math on your purchasing power. Before you start cruising any neighborhoods for open houses, you need to know which driveways you can financially afford to pull into. Meet with a lender who will help you determine which type of financing (fixed rate, adjustable, etc.) will work best for your situation and how big of a loan you can comfortably qualify for with each type of available financing. Also, getting pre-approved can put you in a much stronger negotiating position because it shows the seller that you are a committed buyer, financially capable of buying the property and more likely to close on it.
• Work with the right agent. Your real estate agent will be your partner in your search, so it’s important to have confidence in him or her. Look for a professional REALTOR®, like myself, with experience and success in the neighborhoods you’re considering.
• Start surfing. One of the most important tools for your house hunt can be found right in your own home or office – the Internet. Many homes are listed for sale on the Internet because real estate agents know that most people turn to the Web first when looking for a new home. With just a few clicks of a mouse, you can see pictures, take virtual tours and map out locations for homes that contain features you are looking for. A good place to start is www.CaliforniaMoves.com. You can register for e-mail alerts to have information about available homes sent to you and your agent so that your agent can help you investigate whether any of those homes are right for you.
• Location, location, location. One can make a list of pros and cons for nearly every home in every neighborhood. That’s why it’s important to narrow your search before you start touring every house in town. Decide which neighborhoods work best for you, your family and your work commute. Check out school districts, shopping and dining, public transportation, recreational areas and any other facts that are important to you.
• List your priorities and prepare to compromise. The dream home you have pictured in your mind might not exist in reality – or at least not in your neighborhood or price range. It may be necessary to sacrifice that extra large bathtub or redwood deck in order to get the home located near your child’s school that has the four bedrooms you require. Make a list of the features you would like versus ones you can’t live without. Then, bring your list with you as you tour homes to keep score.
• Would you like French doors with that? Once you’ve found a home you like, consider the costs of upgrades, repairs or remodels and factor those into your short or long term budgets and be certain to investigate with the local planning entities whether or not those upgrades are even possible.

With a little planning up front you will be well on your way to enjoying your new home before you know it.