Suffolk County NY housing is expected to strengthen along with the economy in 2015, according to Freddie Mac's U.S. Economic and Housing Market Outlook for November.
Frank Nothaft, Freddie Mac's chief economist, said recently that “the good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better.”
Predictions for Suffolk County NY Housing for 2015
Mortgage rates: Interest rates will likely be on the rise next year. In recent weeks, the 30-year fixed-rate mortgage has dipped below 4 percent again. But by next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of 2015.
Home prices: By the time 2014 wraps up in a few weeks, home appreciation will likely have slowed to 4.5 percent this year from 9.3 percent last year. Appreciation is expected to drop further to an average 3 percent in 2015. Continued house-price appreciation and rising mortgage rates will dampen affordability for home buyers, according to Freddie economists. Historically speaking, that's moving from 'very high' levels of affordability to 'high' levels of affordability.
Housing starts: Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.
Single-family originations: Mortgage originations of single-family homes will likely slip by an additional 8 percent, which can be attributed to a steep drop in refinancing volume. Refinancings are expected to make up only 23 percent of originations in 2015; they had been making up more than half in recent years.
Multi-family mortgage originations: Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent.
Consumers are more upbeat and businesses are more confident, all of which should lead to faster economic growth in 2015. And with that, the economy is expected to produce more and better-paying jobs, providing the financial wherewithal to support household formations and Suffolk County NY housing activity.
Stay tuned here, we'll update you as the calendar turns to 2015 on Suffolk County NY housing and the trends affecting the numbers for the new year.
Follow news on Suffolk County NY housing by periodically checking back in the Suffolk County NY Real Estate News section of our website under Suffolk County NY Real Estate Categories.
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With rents climbing faster than most American's paychecks, the latest trend in Suffolk County NY housing is finding a roommate to split the bills, and it isn't just for kids straight out of college anymore.
The percentage of adults living with someone other than a spouse or partner hit 32% nationwide in 2012, up from 26% in 2000, according to Zillow's analysis of the latest Census Bureau data.
Judging by the ongoing decline in homeownership rates and tightened supply of rental vacancies, the trend appears to be gaining momentum.
People start pairing up when rents are climbing and incomes aren't keeping up — and in recent years, rents have really been on a tear. They rose 6.5% over the 12 months ended in September, according to Trulia. Meanwhile, wages have remained more or less flat.
Benefits of Sharing Costs With Suffolk County NY Housing
Working adults in doubled up households tend to earn less, according to Zillow. So sharing their Suffolk County NY housing enables them to afford and compete for more attractive housing.
Many roommates enjoy not only the savings of splitting costs 50/50, but they also enjoy the companionship that comes with sharing their Suffolk County NY housing.
Renters who are willing to live together and share costs are also able to afford nicer places as opposed to footing the cost of everything themselves. The same holds true for some who decide to invest in Suffolk County NY housing by purchasing a home rather than renting. But buying a home together requires careful consideration, as well as legal advice. Co-owning Suffolk County NY housing can get complicated, much more so than just renting.
We have more articles concerning Suffolk County NY housing in the Suffolk County NY Real Estate section of articles, as well as additional home buying tips in the Suffolk County NY Home Buying Tips section, both under our Suffolk County NY Real Estate Categories to your right.
There are three common areas in your Suffolk County NY home where energy is probably being lost. These energy saving tips focus on entry doors, windows, and your attic access. These are the three most common problem areas.
You can correct and insulate problem areas by following these tips…
First time Suffolk County NY homebuyers seem to be disappearing right before our eyes. The same is true nationwide, as the percentage of homes that were sold to first-time homebuyers dropped to 33% this year, the lowest percentage in almost three decades.
This drop in first time Suffolk County NY homebuyers is despite the fact that mortgage rates are hovering near record lows and home prices are still off about 15% compared to the housing boom peak, according to the S&P/Case-Shiller 20-city home price index.
Young adults, who make up the lion's share of first time Suffolk County NY homebuyers, want to own. According to a Zillow survey released in October, respondents ages 23 to 34 were, in fact, very bullish on home buying, with 83% of young renters expecting to buy a home someday.
First Time Suffolk County NY Homebuyers Want to Purchase a Home
The problem is not desire. Blame it on heavy student debt loads and incomes that aren't keeping up with rising home prices. Rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who've experienced limited job prospects and flat wage growth since entering the workforce.
Strict lending standards have also made it more challenging for Millennials to qualify for mortgages, especially since many are carrying thousands of dollars in student loan debt. This has also added costs to mortgage borrowing for many young buyers. With limited credit histories, they usually have lower credit scores and lack the funds to make large down payments.
Suffolk County NY homebuyers using low down payment FHA loans, for example, pay about $50 more a month for mortgage insurance on loans of $100,000. And borrowers with 640 credit scores getting Fannie Mae- or Freddie Mac-backed loans pay fees that are three percentage points higher than borrowers with 740 credit scores.
Get more timely information for Suffolk County NY homebuyers in our section on Suffolk County NY Homebuyer Tips to the right under Suffolk County NY Real Estate Categories.
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