By Jesse McCarl
The market reports from the first quarter of 2015 signal a great year in the industry. But these are the areas that could be any agent’s downfall. We’re bringing them to your attention now so that you can move forward knowing how to talk to your buyers and your sellers about threats to the housing market that they may be concerned about.
1. Disappearing Investors
The number of investment buyers has dropped 5% since this time last year.
2. Rising Mortgage Rates
Interest rates are at a historical low right now, but are expected to hit 5% this year. Those are the highest rates since 2010.
3. Fading Foreign Buyers
The value of the American dollar has gone up, but that means foreign markets are less inclined to move here. Foreign investors dropped 25% in 2014.
4. Cost of Living Discrepancy
The average home price went up 11% last year. Did your salary go up that much?
5. Trapped Renters
Rent rates are rising faster than mortgage rates. When renters can’t afford to save for a down payment, they get stuck in the cycle of renting.