An awesome info-graphic for all those considering contemplating homeownership in 2015. Helped clarify my thinking a ton. Hope ya'll enjoy. Original infographic credit goes to Pearl Insurance: http://pearlinsurance.com/Blog/Real-Estate/post/the-good-the-bad-the-wobbly

1. The Good, the Bad, & the Wobbly
WHAT REAL ESTATE AGENTS SHOULD EXPECT
FROM THE HOUSING MARKET IN 2015

2. THE GOOD

3. US
EU
Japan
China
The U.S. Economy Is Strong
3.1%
5.6
1.3%
0.8%
7.1%
%
With the lowest national
unemployment rate in 6 years,
optimism in the economy will
be strong.
With a growth rate far above most other large
economies, home-buyers will remain optimistic
throughout 2015. While China’s growth rate will
be higher than most, it will also be at its lowest in
15 years.
Sensitive geopolitical factors outside the U.S. will
also make the dollar an attractive currency. This will
help lending rates generally and stabalize fears of
depreciation investment returns for home-buyers.
The Economy Is Turning Around
Simply put, optimism is on the menu in 2015 as
unemployment is reaching its lowest point in half a
decade. Additionally, geopolitical considerations
indicate a strong dollar for the foreseeable future.
When the economy is strong, the housing market
tends to mimic it!

4. 88%
69%
vs.
2001
2014
In 2014, 88% of buyers purchased their home
through a real estate agent or broker, up from
69% in 2001.
Home-buyers Still
Trust Great Realtors
Homebuyers Trust Great Realtors
Even with all of the wonderful information on the
internet, nothing can replace what great realtors
do. Homebuyers may be more informed by online
sources, but that doesn’t change the trust they put
in real estate professionals. Buying a home through
a real estate agent is on the rise!

5. Home Sales Will Grow New Home Sales
19% 15%
Existing Home Sales
vs.2014
+4%
-2%
2015
+8%
+25%
Expect the investors who fueled the earliest years
of the recovery to start moving out of the market,
freeing up housing stock for other purchasers in
many overheated markets.
4% FEWER INVESTOR PURCHASES

6. THE BAD

7. Affordability Will Decrease
+5% Home Prices
+5% Mortgage Rate
Decrease in Affordability
-5%-10%
3%
By some estimates, homes are
currently 3% undervalued. This leaves
little room before homes start to
become overvalued. The question will
then haunt some home-buyers: will
the market overheat again?

8. Buyers Will Become
More Educated
of buyers
started their
housing search online
43%
12%
50%
of buyers use
a mobile website
or application
to search
The days of realtors controlling the conversation are
long gone. Expect buyers to become increasingly
knowledgeable and demanding about what houses
and neighborhoods they want to shop.

9. 33%
While income has
stalled, student debt
has tripled in the
last decade.
3x
Of that student debt,
11% is currently delinquent
11%

10. THE WOBBLY

11. Growth Will Be Dependent
on Millennials & First-Time
Buyers
60%
40%
34%
32%
credit
rising
cost of
housing
student loans
home
selection
Issues Cited by First-Time
Buyers in 2014

12. Technology Will Create an
Increasingly Competitive
Environment
Technology Is A Game-Changer
Real estate agents will have to stay on their toes to better
serve well-informed buyers. Fortunately, many buyers
still turn to real estate agents for reliable information and
guidance in the housing market. Although technology
can make client acquisition more competitive for real
estate professionals, it also provides an opportunity for
agents to reach buyers online.

13. Housing Trends Will Continue
to Move Away From Single
Family and Non-Luxury Homes
Builders Shifting To Multi-Family And
Commercial Properties
Although single-family homes will always have a place in
the market, builders are shifting their focus towards
multi-family and commercial properties. This may create a
crunch on the demand for single-family homes in the
future.