Are you thinking about putting your condo on the market in 2015? Or, are you a buyer who is wondering that the trends are that are affecting real estate prices this year? Here are some of the trends affecting both buyers and sellers in 2015:
- This is the year millennials will enter the marketplace. By the end of the year, millennial buyers are projected to comprise the largest group of homebuyers, surpassing Generation X. Their preferences include smaller houses and ones closer to the city’s core, which will result in increased demand for these properties.
- Lower down payments are back. As the memory of the housing market crash recedes and competition for the mega-deals on foreclosures dies down, lenders are more willing to accept down payments of less than 20%, and even into the single digits.
- You no longer need perfect credit. Along the same lines, the requirements for obtaining credit have also been loosened, enabling younger people whose credit score is not perfect due to their short credit histories and student loans to obtain the mortgages they need to become first-time homeowners.
- Less competition puts buyers in control. Real estate prices are climbing more slowly now than they were 2-3 years ago, which means that there is less competition for homes, and that buyers will no longer have to worry about overbidding in order to win against multiple competing offers on the same listing.
As you can see, all these trends are favorable for first-time homebuyers. This should bring more buyers into the marketplace and further stabilize Chicago’s real estate market.
