No matter where you turn at this time of year you can’t help but find plenty of “Predictions” lists covering any number of topics. I won’t be any different here as I have historically put together my list as well for the real estate market and have shared it with other real estate professionals. Now, I’m sharing this year’s forecast with you!
Prediction # 1
Interest rates are incredibly low right now at about 4%. Many economic forecasts predict they will rise in 2015. My prediction is that they will maintain the 4% level and could potentially DROP to about 3.5%!! How’s that for contrarian thinking? I just haven’t seen enough sustained economic growth to warrant the higher rates.
Prediction # 2
Inflation will continue to run high. The government tells us that inflation is only in the 2-3% area. No way! That number is based on an examination of the bundle of products and services the government determines to measure. And in the last few years they aren’t measuring things that you consume everyday like food, gas (one good spot), clothing, utilities, health insurance, etc. We have all seen prices jump on average 6-10% annually. Unfortunately, this will continue.
Prediction # 3
Property appreciation will run at about 4-5% for 2015. Slightly ahead of the government’s inflation number but behind the real rate of inflation, and be more tied to wage increases.
Prediction # 4
Since schools no longer teach cursive writing, personal signatures to identify someone will begin being replaced with “permanent and personalized” electronic and biometric “signatures” recognized and accepted by merchants first, and eventually everywhere in the coming years.
Prediction # 5
The last of the recession remnants known as foreclosures and short sales will finally fall back below 5% of all sale activity and return to “normal” which could be as low as .5 to 1%.
Prediction # 6
Neither Robert Downey Jr. or Robert DuVall will win an Oscar for their performances in “The Judge”. A superb acting job by both. But when Hollywood doesn’t care for you, it doesn’t matter how good you are on the screen. (Hey, who said these predictions had to be all about real estate?)
Virtual tours of homes have been around for years now, but there is a new technology that is turning all photos and tours into a 3D experience. 2015 will see the immergence of this technology in a big way in real estate. This will create another exciting experience for buyers looking online for their next home.
With President Obama’s executive order regarding giving illegal aliens who are already in the country access to certain rights, we will see an unprecedented tidal wave of immigration from Mexico exceeding over 250,000 in 2015 (even though the order won’t affect them). This will have some impact on real estate activity around the country.
The Twin Cities has surged in reputation around the country for its diversity of exceptional restaurant choices. So much so that 2015 will see the beginning of upscale socialites flying into the cities solely for the purpose of experiencing the fine cuisine options world famous chefs are creating here.
You will have to wait until next year to see how right or wrong I turn out to be!
article contributed by:
8400 Adair Avenue N
Brooklyn Park, MN 55443
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