The continuously fluctuating stock market, rising energy prices and the interest rate debacleas created quite an uncertainty within the National Real Estate market as of late. However,industry analysts predict that sellers are in a great place as the demand for housing is high,but for the buyers, home prices are quite high and are continuing to rise. This is a deterrentfor first time home buyers which could in turn lower real estate sales.
According to Stan Humphries, chief economist at Zillow, The housing market conveyer beltrequires people to buy the homes, if we cant get people on the first rung the whole conveyerbelt slows down.
Another issue that needs to be taken into consideration is the low real estate inventory. Across the nation there are many real estate markets that just do not have enough homeslisted for sale to meet the demand. This is seen especially in and around major cities.
According to Erin Carlyle, writer at Forbes, Despite the fact that investors have mostly leftthe market (since the great deals of the recession are now gone), regular people are stillcompeting for too few homes, Carlyle said. One key reason: developers simply arentbuilding enough new houses.
The mortgage rates are still at a low 3.90% as of yesterday, according to mortgage giantFreddie Mac. These low rates will be the key factor to the strength of the market for theremaining of 2015, creating a strong sense of urgency in potential home buyers.