Continued improvement of the housing market seen in 2015

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2014 proved to be a good year for the housing market, with the steady path to recovery opening. The activity in the market is considered to be the best it has ever been since the crash almost a decade ago and the positive trend is expected to continue well into 2015. With a return to a balanced state, the housing market is now expected to benefit both buyers and sellers.

To start, experts expect a stronger job market, continued economic growth, and increasing home prices to improve existing home sales by 7.4 percent. More and better paying jobs should also affect the millennials, especially the older ones who are now getting married and starting families. They are now expected to join the market and make up for a significant portion of new home purchases in the next five years.

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However, millennials could also encounter some obstacles to home ownership. Financing is still difficult to obtain with the strict mortgage qualifications. This could prevent many millennials from buying the house that they want. Additionally, mortgage rates are still rising.

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Meanwhile, builders focused more on multifamily homes in 2014. This year, they are expected to build more single-family homes. Experts predict healthy growth in single-family starts, which will only be limited by the supply of labor and materials. The foreclosure crisis is also expected to end this year as the number of foreclosures should return to a normal level. These factors could significantly normalize the housing market.

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