Tampa Real Estate Market Outlook for 2015: A Preview
In general, this has been a very positive year for real estate in Tampa Bay and we expect that to continue through next year, although at a less frenzied pace. One reason for that is because investors will be exiting the market, as ‘bargain’ purchases are drying up. The absence of investors may make things slightly more manageable for consumer home buyers, in terms of inventory and credit.
On the interest rate side, Wall Street bankers expect that a slight rate hike will occur by June 2015. Back in May, Freddie Mac’s 30-year average fixed rate mortgage was at 4.125%, which was up slightly from 3.98% in 2013.
So who’s the next big block of buyers? Well not too surprisingly, it’s the Millennials, people age 35 and under, who continue to be the driving force behind many growth trends including real estate. Zillow predicts that by the end of 2015, the Millennials will be the largest group of homebuyers in the US, outpacing the 35 to 50 years olds otherwise known as Gen X.
The most significant change for 2015 may make is easier for some buyers to qualify for a mortgage. Currently, Freddie Mac and Fannie Mae have an established minimum credit score number of 620and a down payment requirement of 5%, although many banks have been reluctant to lend to applicants who are near that threshold. However, in addition to clarifying exactly which mortgages Freddie and Fannie Mae will buy, the new guidelines also consider lowering the minimum down payment from 5% to 3%. These measures would be welcome steps for those with lower credit scores or who don’t have a lot of cash for a down payment. Of course, those new policies will likely come with an additional cost to the home buyer.
(source: http://www.forbes.com/sites/markgreene/2014/12/01/fannie-and-freddie-make-mortgaging-easier/)
Overall, we anticipate a steady but positive year for the Florida real estate market.If you should have any questions about your home’s value or the Tampa real estate marketing in general, it would be our pleasure to speak with you. Simply call us at 813-294-5786 or email us at info@dickandkarla.com. We wish you a very healthy and happy 2015!
