My 2015 Real Estate Predictions/ Crystal Ball

It's always both somewhat dangerous, while also being fun, to make predictions or prognostications for the upcoming year, so, of course, I just couldn't resist the urge. Disclaimer: These are merely my thoughts and/ or projections, and certainly no guarantee, of any sort. However, although we are in an ever - unpredictable world, with an often, even more unpredictable (or often, even explainable) economy, the predictions for 2015, are even more intriguing (as well as being speculative). So, here are the Richard Brody 2015 Real Estate Predictions (Using my Crystal Ball):

1. The most likely: Most sellers will continue to over - value their homes, while most prospective buyers will also continue the low ball approach. This approach occurs every year, and nearly never gets the best results. As always: Pricing your home right from the start will get the best results for the homeowner, and realistic offers (and knowing what you can afford) is the best buyer approach.

2. Mortgage Rates: Since they are now, and have been for some time, at historic low rates, eventually they will probably go up. No one knows for sure, but the Federal Reserve has indicated that it will, sometime in 2015 (probably sooner than later, but dependent on economic conditions) probably alter its policies somewhat, which will create an increase in interest rates (therefore, mortgage rates would probably follow). My prediction is that rates will remain someone steady, at lead until the latter part of the 2nd Quarter, or 3rd or 4th Quarter, and then will gradually rise. (Remember that when mortgage rates rise, monthly carry charges for homeowners rise, as well.

3. Real estate taxes always seem to go up, no matter what appraisals, political posturing, etc., is. 2015 should be no exception.

4. Housing Market: 2014 was better than 2013, and a big improvement from the 2008-12 period, in most regions of the country. I would expect markets to be steady to slightly better, because it is becoming increasingly difficult for young families to afford home ownership, but since rents have similarly risen in many locations, I believe more young families (1st time homebuyers) might decide to jump in (before interest rates go up).

5. Tax deductions for mortgage interest and real estate taxes: No one ever knows for certain what politicians will do, but I believe even politicians are NOT crazy enough (especially in a continuously fragile economy) to eliminate these. If anything is done, there may be a movement to cap the amount of these that are tax deductible, but I do NOT believe that will happen in 2015!


We'll have to wait about a year to see how well my predictions work! I believe in them, but there are NO guarantees. 

Owning a home is an important component of our nation's economy. Hopefully, issues facing affordability for 1st time Buyers, etc., can be addressed to make it remain an essential part of most people's American Dream. But I don't expect any miracles during 2015, with the current economic policy.


I present this to you because of my trademarked pledge: "I will always tell you what you need to know, not just what you want to hear." TM