Five Reasons to Invest in Real Estate Next Year

It’s good to be able to say that 2014 wasn’t a bad year in real estate. It’s even better to say that 2015 could be a great year. Early projections tell us why:

• Phoenix is among the top 10 for hot housing markets in 2015. Realtor.com’s Chief Economist, Jonathan Smoke, predicts that continued housing growth and swift sales will define the coming year for our fair, desert city. Phoenix continues to be in the top five markets for new construction. Meanwhile, the housing market remains affordable, while income is expected to grow more quickly throughout 2015. It’s the perfect time to find solid deals on investment properties, then watch them grow.
• Loan limits aren’t changing any time soon. With the housing recovery in full swing, the Federal Housing Administration has announced that federal limits on GSE (government-sponsored enterprise) loans won’t change significantly in 2015. Whether investing in a one-unit property or a multi-unit property, you can expect that your qualified loan amount won’t change. Hence, you can still enjoy the lower interest rates and down payments of recent years.
• Tech fear is subsiding. There is no doubt that changes in technology affect the real estate market. That won’t change anytime soon. But, people are starting to accept those changes as adaptation challenges instead of simply resisting them—thereby reducing the fear that can paralyze the market. With more and more people working from home, for example, investment properties may look a little different, but you can anticipate those types of needs and leverage them to get bigger returns on your investment properties.
• Residential real estate is normalizing. Just as loan limits are stabilizing, as are the fundamentals of the housing economy. With supply and demand taking the lead once again, confidence in residential real estate investment is returning.
• Generational changes will likely spur the market. Millennials who manage to get employed in the coming year will likely be looking to settle down with their families. Meanwhile, Baby Boomers will be looking to downsize, now that they are in the position to sell. All the action will certainly open up new investment opportunities—be ready for them!

Wishing you the best of these predictions, in 2015!