In Charles Dickens’ words, “It was the best of times. It was the worst of times…”
Although the nineteenth century author was not describing 2014, he could have been, in regards to home prices.
At Palm State mortgage, we watched as home-prices escalated throughout the year, which thrilled sellers and depressed buyers.

2015 Trends In Home-Prices

As we begin 2015, Palm State Mortgage Company has discovered the good news that “Home-price gains for 2015 are moderating, aiding affordability.”
According to Forbes reporter, Ruth Mantell, home-prices “are “moderating”

Comments like this one indicate a trend that means residential values of 2015 might “not run much hotter than median family income in the near future, according to an analysis released Friday.”

To  understand the new trends for home-prices, you can take a look at the latest data of the S P Schiller home market information, in a simple chart, at this dependable online resource.

Steve East, an economist at Height Securities, a Washington-based broker-dealer and research firm, recently crunched the numbers. He contrasted the home-price data from S&P/Case-Shiller with the median family income. He deduced that “the model has more or less stabilized.” Good news for house-hunters and house sellers in a world of co-existance in 2015!

On the slightly negative side, we must remark that yes, he sees home prices are generally overvalued when you look at the median family income.  On the positive side, many experts believe “that the gap may not substantially worsen.”

Checking Up On 2014

Put simply, East stated, “Going forward the increases in the Case-Shiller index may continue to be more in line with (or at least not significantly in excess of) the increases in…median family income.”

S&P/Case-Shiller also recently reported that its home-price gauge hit the slowest annual growth in two years. We feel safe generalizing a little bit because this gauge tracks 20 cities.”
There is also conclusive proof that the number of homes for sale is increasing, giving house hunters more options concerning home-prices,  within their income bracket.

We can conclude that this slower rate of appreciation will transform home-prices into more affordable options for families, even if they have not seen their wages rise significantly in recent years.
Experts say, “At the same time, a strengthening labor market could lift families’ incomes.”

 

Home Pricing:  Palm State Mortgage Company Keeps It Real!

 

As we study the trends for the New Year, we promise not to use rose-colored glasses.  We are aware of the challenges that might be facing you as a home buyer. New house 2015

1. Some markets, some areas, are hotter than others. Home prices in 27 states will pass their highest ever levels, by the middle of 2015, according to experts.
2. You should continue to be aware that parts of our state are still struggling economically to overcome the big hits the housing market took in 2008.
3. We love the trend to lower home pricing, which will help us make your mortgage more affordable. However, we also see the dark side of the equation, which looks so balances at a glance.
“It could take longer for equity to rise for homeowners, including those who owe more on a mortgage than a home is worth and are struggling with their payments.”

In 2015, we do advise you to buy a home and a neighborhood where you can see yourself and your family for the next ten years. Renting costs are rocketing!

Home buying is stabilizing, but home renting in 2015 is going to be expensive.
Did you know that landlords increased rental rates at the fastest pace in six years, during 2014?

Just as you search for your new house in 2015, you will also be hunting for a mortgage provider that you can trust  At Palm State Mortgage, we know the financial trends ahead for the New Year. We know the mortgage laws, and we can guide you through the mortgage process with step-by-step expertise and experience.

We promise to provide you with the best possible loan option for your situation. If you are ready to begin your search for a mortgage, and you don’t know where to start, we personally invite you to check out our  special home purchase worksheet on this page of this same website.

Happy House Hunting in 2015! However the trends in home-prices develop, we will be there with the financial information you demand to make the best possible choices in home-buying for your family.
As we begin the New Year, we can not help but thank you again, for reading our blogs, and we wish you, our clients, friends and blog readers, all the best in health, good fortune, and happy house hunting in the coming months.