RE/MAX of Southeastern Michigan has released the top real estate trends to watch for in 2015, and — much like 2014 — it’s going to be a competitive year for homebuyers.
“It’s definitely the year of the seller,” says Joe Sabatini, vice president and regional manager for RE/MAX of Southeastern Michigan, which oversees nearly 800 sales associates in Macomb, Monroe, Oakland, and Wayne counties. “Based on the trends we’re seeing, inventory is going to be tight. There’s no question about that.”
In addition to an uptick of buyers who first began looking for a home in 2014, Sabatini expects to see an influx of millennials ready to make the transition into home ownership. “With rent going up throughout metro Detroit, millennials are looking for a fixed payment (option). If mortgage rates remain steady, and rent continues to increase, that’s going to push (new) buyers into the housing market,” he says.
Because inventory is unlikely to increase substantially, buyers will face a more consistent selection than they have in the past, Sabatini says. He notes that investors bought up several “fixer-uppers” in 2013, and began reselling the renovated or “flipped” versions in 2014.
“We’ll continue to see that this year,” Sabatini says. “The properties being listed now are in pretty good shape.”
As Sabatini expects to see properties sell quickly this year, he recommends that buyers pursue pre-qualification for home loans so they can make a commitment sooner rather than later.
To recap, RE/MAX’s top five trends for the year include:
- Home inventory will remain tight.
- Millennial buyers will enter the market.
- Leftover buyers will keep the housing market competitive.
- Home prices will continue to rise, but at a slower pace.
- Higher rents will encourage more people to buy a home or condo.