N.E. housing forecast: more young buyers, tight inventory
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A study by RE/MAX of New England is predicting increased activity this year among younger homebuyers but not enough homes to change hands in high-demand areas of the region.
The RE/MAX of New England 2015 Housing Forecast predicts a strong market for first-time buyers in their 20s and 30s – the “millennial” generation - if consumer confidence remains high and unemployment low. Loosening lending practices combined with interest rates that are predicted to remain low at the start of the year could contribute to a strong first half for home sales, especially among first-time buyers, according to the forecast.
Lending guidelines put in place at the end of 2014 from Fannie Mae and Freddie Mac could help encourage millennials to buy homes near the colleges they have graduated from, according to the forecast. Those guidelines were established to encourage first-time homebuyers.
However, even as younger buyers enter the market, there is ongoing concern regarding available inventory. Nearly all Realtors interviewed for the forecast were facing inventory shortages. This represents a continued shift from the buyers’ market of 2008 to 2012, according to the forecast, to a more balanced market.
WBJ Web Partners
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