It is possible that 2015 will be the best year for Northern California real estate in many years. The recession is behind us, thus fear of making that big ticket purchase is also gone; more jobs are being created through San Francisco and the Northern California area, and the home buying market is thriving. There are also many more homes being supplied on the market, thus creating more interest in buying. The numbers for real estate in Northern California are better now than they have been since 2008, and the coming years will only bring more delight to those numbers.
A Look at Mortgage Rates
Along with a great prediction for sales in 2015, it is also expected that mortgage rates will also remain at some of the lowest levels in history. This low mortgage rate is expected to remain steady throughout the year. For anyone that is interested in buying a home, the incredibly low mortgage rates have certainly been enticing.
The Numbers are In
The numbers speak for themselves. The California Association of Realtors (CAR) reports that a 5.8% increase in home sales will take place in 2015, despite a 8.2% decline in 2014. The average cost for a home will rise to about 5.2%, which is certainly much lower than the 11.8% increase that was seen in 2014. A projected increase in jobs and decrease in unemployment is also expected, with only 5.8% of the Northern California area out of work.
Commercial Real Estate Figures
This good news doesn’t apply only to home sales. Commercial real estate is also expected to also remain modest, but steady, into the 2015 year. There are less vacant properties and more non-residential construction properties being built. Manufacturing construction has increased by 8% in the 2014 year, and that number is expected to increase another percent into 2015.