From RealTrends.com: “Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.” Helen Keller
Earlier this year, the National Association of Realtors invited me to speak at its annual convention in New Orleans in November. As I spoke with the attendees, I noticed a prevailing sense of optimism. They were feeling good about this wonderful profession.
I was glad to see it because I believe optimism is something all real estate professionals should make a part of their daily lives.
So, let me get to the specific reasons I believe you should be excited about 2015:
- More first-time buyers will be entering the market. You may have seen the report this fall that the number of first-time buyers hit a low. Well, that may have been true. But now, there are factors at play that will encourage first-time buyers to enter the market such as more jobs, underwriting standards that are more welcoming, and mortgage products that allow buyers to only put down 3 percent. Plus, all-cash investors are stepping away, giving first-time buyers a better chance to get into the market. I also think the steady job and economic growth will cause trade-up buyers to jump off the fence.
- Finances behind real estate will expand. The funds from the taxpayer bailout of Fannie Mae and Freddie Mac have been paid back in full. In fact, recent profits from the two companies have become revenue for the federal government. Meanwhile, the FHA bailout is on track to be paid back by year’s end. Plus, the number of seriously delinquent mortgages is down from 10 percent a few years ago to just 4.8 percent in the second quarter of 2014.
- The inventory shortage will improve. Homebuilding is expected to ramp up in the new year, with the National Association of Homebuilders predicting a 20 percent rise in single family homes from this year. Analysts say that will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years. And distressed property sales—REOs and short sales—are at their lowest levels since at least 2008.