January 2015 Garden City, NY Real Estate News – Peter Owen

Long Island Real Estate

Nassau County, NY Homes

Garden City, Floral Park, West Hempstead, Franklin Square, Mineola, Stewart Manor

Peter Owen

Licensed Real Estate Salesperson

The Donnelly Group

730 Franklin Ave, Garden City, NY 11530

(516)317-2860

Email:  petero@TheDonnellyGroup.com

Hi Everyone

Happy New Year, almost!

Based on what I am seeing currently and what I have been saying for the past several months about this active market, I think this is going to be an outstanding year with prices rising nicely. Reason is there are still too many buyers and not enough sellers in Nassau County, NY, in particular in the Garden  City area. This situation can only lead to higher prices as the buyers fight for fewer and fewer quality homes.

I cannot say it enough – do NOT wait until Spring to buy or sell. Spring will bring a new set of buyers, but also all the Sellers who think Spring is the only time to sell. You will face much increased competition come March and who knows what the Buyer situation will be then.

Call me if you need assistance in any Real Estate transaction or if you have any questions.

I hope you are enjoying the holiday season with family.

Lastly, visit my new Website – http://www.nassaucountynyhomes.com/ which is still evolving, and let me know what you think.

Peter Owen

2015: Year of the First-Time Home Buyer

First-time home buyers are expected to re-emerge in the new year after mostly staying out of the market in the aftermath of the housing crisis. That’s one of realtor.com®’sfive top housing predictions for 2015.

“The residual financial effects of recession-driven job losses and subsequent unemployment have impeded Millennials’ entry into the home-owning market,” says Jonathan Smoke, chief economist for realtor.com®. “In 2015, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery. If access to credit improves, we could see substantially larger numbers of young buyers in the market. However, given a high dependency on financial qualifications, this activity will be skewed to geographic areas with higher affordability, such as the Midwest and South.”

Realtor.com®’s top five housing predictions for 2015 are:

1. Millennials to drive household formation. Households headed by Millennials are expected to see significant growth in 2015, particularly as the economy continues to make gains. Millennials are expected to drive two-thirds of household formations over the next five years, according to realtor.com®’s report. The forecasted addition of 2.5 million jobs next year, as well as an increase in household formation, are the two factors that realtor.com® points to in driving more first-time home buyers to the housing market.
2. Existing-home sales on the rise. Existing-home sales are projected to rise 8 percent year-over-year in 2015, as more buyers enter the market. Distressed properties will make up a smaller share of that growth, unlike in 2012, when a similar increase in existing-home sales was mostly driven by distressed properties.
3. Home prices will rise. Home prices are expected to continue to edge up in 2015, with realtor.com® forecasters predicting a 4.5 percent gain. “While first-time home buyers have many economic factors working in their favor, increasing home prices will make it more difficult to get into high-priced markets such as San Francisco and San Jose, Calif.,” realtor.com® notes in its report. “As a result, first-time home buyer activity is expected to concentrate in markets with strong employment and affordability, such as Des Moines, Iowa; Atlanta; and Houston.”
4. Mortgage rates to inch up to 5 percent. In the middle of 2015, mortgage rates are expected to increase as the Federal Reserve increases its target rate by at least 50 basis points before the end of the year. That will likely bring the 30-year fixed-rate mortgage to an average of 5 percent by the end of 2015. (It’s currently averaging 3.89 percent, according to Freddie Mac.) The 1-year adjustable-rate mortgage, on the other hand, is expected to rise more minimally. “Lower ARM interest rates will influence an uptick in buyer interest for adjustable and hybrid mortgages,” realtor.com® notes. “While still at historic lows, rate increases will affect housing affordability for first-timers trying to break into the housing market and will be another factor pushing them to less-expensive locales.”
5. Housing affordability will decline. Affordability for homes, based on home-price appreciation and rising mortgage interest rates, will likely fall by 5 to 10 percent in 2015. However, the decline in affordability likely will be offset by an increase in salaries next year for many households. “When considering historical norms, housing affordability will continue to remain strong next year,” realtor.com® notes.

Garden City

Floral Park

Malverne

Roslyn Heights

New Hyde Park

If you would like a free Comparative Listing Report to see what price you  can expect in this market, just call or email me. Absolutely no  obligation or pressure. I am one of the

Peter Owen

Licensed Real Estate Salesperson

The Donnelly Group

730 Franklin Ave, Garden City, NY 11530

(516)317-2860

Email:  petero@TheDonnellyGroup.com

Website: http://www.nassaucountynyhomes.com/

Best, top, most trusted and dedicated agent covering Garden City, Stewart Manor, Floral Park, Malverne, Lynbrook, Roslyn Estates, and Roslyn Heights displaying a high degree of integrity, service 24/7, professional attitude and actions.

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