The real estate always seems to have a game of ups and downs to play in the market. Though there are good upcoming projects, the time seems to be wrong. 2014 was a slow year for the real estate market. But 2015 seems to have held high hopes. With a good atmosphere and great upcoming projects in Ahmedabad 2015 is sure to be a great year. The market researchers have high hope with 2015. They think that this year is going to the good when it comes to real estate. Good properties are not the only reason they find 2015 so good, there are some more reasons to it. Let us take a look at them.
- Stabilized House Rates:
The experts predict that there can be a 4.5% gain in house prices. 2014 witnessed stable growth than the crazy price increase in 2013. Not only the rapid home prices but also many investors have retreated in many markets. 2015 is expected to continue to edge up the home prices.
- Youth Force:
Younger professionals expect that this New Year makes them a proud owner of a house. This is because if they seem to have luck in their job. There is a great rise of about 3% in the job employment, especially for the youth aged 25 to 30. According to the tabloids, two-thirds of household formations will be carried out by the youths in over the next five years. The forecast was about the increase in the household formation, it expects a rise in the jobs by 2.5 million next year. This will attract more and more first time buyers to own houses.
- Rising Mortgage Rates:
The borrowing costs of refinancing home owners and home buyers have been lowered because of the fallen interest rate. The interest rates have gone down, as low as 4%. But it looks like this scenario won’t last for a long time. They are expected to rise by the end of the year. They are likely to have an average of 4.5% to around 5%.
- Decline in House Affordability:
Affordability for homes is based on rising mortgage and home-price appreciation. In 2015, there may be 5 to 10% fall in the interest rates. If there is an increase in salaries for many households there will be a decline in the affordability.
- Availability of New Homes:
A family new-home starts was barely affordable in 2014, in comparison to 2013. But with the upcoming projects in Ahmedabad, looks like 2015 finally has good news for you. 25% rise is expected in the sales of new homes. The housing section is expected to gain momentum as we head towards the next year. You should thank the upcoming projects for this.
- Rise in Rental Price:
2015 is likely to witness some rise in the rental costs. The rental price is expected to outpace annual gains of the home-price. This year will bring great satisfaction to the landlord’s market; even as it is expected that the vacancy rates will stay below 5% this year.
- The Strong Economy:
With the availability of jobs and more money in hand, the economy will be stronger with more demand for houses with the economy gaining momentum, the upcoming projects and lower interest rate, housing will have to cope up with the excessive demand.
- New Programs:
Many new programs are coming up to help the buyers own their dream house. They have made this possible by lowering the down payments. The down payment is lowered as low as 3% and the availability of loans has also been made easier.
These may be some of the reason why 2015 can be a really good year for real estate.