2015 Predictions for the Real Estate Market
Buying and selling a home has certainly been a roller-coaster experience over the recent past, and I predict will continue to be full of interesting twists and turns in the near foreseeable future. Certainly the anticipation of political changes has brought transactions like short sales to a snails pace. Congress has yet to make a call on the extension of of the Debt Forgiveness Act of 2007, and the short sale process has not gotten any easier since they first became popular 6 years ago. It is doubtful we will see much progress after the election as the lack of bi-partisanship continues to negatively effect the pace at which recovery is happening. Even with the slow pace of short sales, they continue to be the most responsible way a homeowner can avoid Foreclosure.
There are a number of indicators which tell us that the market we are currently in is likely to remain much the same with regards to the number of short sales and Bank owned sales. But also signs that a slowing may be on the horizon, and even predictions of a decline in home values.
I have noted that in the past 30 days I am seeing a softening of the local market. September is certainly not running at the same rate in terms of real estate activity, as July was. My peers from all across the country are experiencing similar happenings. August stats for the Nations resales and new construction are also down over last year.
On September 18th, 2014, a former Goldman Sachs executive delivered an 18 page report to the White House that has many banking institutions alarmed. He warns of an adjustment in the current home values by as much as a 15% decrease over the next three years, which could wipe out all of the gains we have seen in the current recovery. Here is a link to the article.
http://dsnews.com/news/09-18-2014/analyst-predicts-home-price-decline-report-white-house
This report follows a recent CoreLogic report indicating the past several months of national home prices has hit a plateau. Plateaus of this type can also signify a warning of a correction in home values might be imminent.
By itself, I would say these are the kinds of things we continue to hear, and then the next week, we see good news, however, there does appear to be multiple sources of independent opinions all coming to the same conclusion.
There is a projection this could lead to a resurgence of short sales and foreclosures all across the country, and unfortunately the State of Maryland has not made significant recovery in this area to date. Because Maryland is a Judiciary State, the backlog of homes facing Foreclosure has us ranked 4th in the Nation in terms of the quantity of homeowners having missed making a mortgage payment in 90 or more days.
