Real Estate Market Predictions for 2015

As it’s becoming customary here at RealtyProx, during our last marketing webinar of the year we asked our guest Lee Honish to play a fortuneteller and speculate about the future of the real estate market. Lee’s predictions for 2014 have come true, so we were excited to hear what, in his opinion, 2015 will have in store for the real estate community.

According to Lee Honish, it’s important to acknowledge that currently the real estate market is flat. “If you’re a real estate agent and you’re struggling now, you will continue to struggle next year”, warned Lee.

The realities of a flat real estate market should continue throughout 2015. It is expected that the Fed is going to end quantitative easing at some point next summer. As a result, the interest rates will go up between now and the next summer.

Our guest has also referred to the real estate market as a “hot pockets” market, where some areas continue to see exponential growth with no signs of cooling down. Other areas in the country, at the same time, are flat and cold with prices down and days on the market up.

To make matters worse, real estate sales will continue moving online. In 2014, Auction.com was responsible for 37 percent of distressed real estate transactions (REOs and short sales). This trend will definitely continue in 2015, especially considering the merger of Trulia and Zillow. More and more investor cash-backed companies will venture into the business of listing and selling real estate properties online and this is going to become a new norm.

So is there any good news at all? Definitely! Top real estate agents are always able to find deals no matter what the market conditions are. For real estate agents looking for a steady and somewhat predictable stream of listings in 2015, Lee suggests taking a second look at short sales… again. Why? The simple answer is: these are the people that have to sell.

Given current market conditions and considering a lack of appreciation, a lot of homeowners who don’t have to sell are very likely to wait. Homeowners who still can’t afford their houses and who are in the “cold pocket” of the country don’t have that luxury.

In addition, government programs aren’t there anymore the way they used to be and no one is handing out easy loan modifications. In the states where real estate agents are still doing short sales (Florida and Nevada, for example) banks are still postponing sales date. However, in the rest of the country where real estate agents abandoned short sales, banks are more aggressive when it comes to actually foreclosing on delinquent homeowners.

That doesn’t mean there aren’t delinquent homeowners in the rest of the country; just real estate agents refusing to do short sales…

Whatever you do for 2015, look for people who MUST sell and consider specializing in niche markets, be it short sale, probate or anything else, where you can find inevitable sales and carve out a niche for yourself.

Watch full recorded webinbar below