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Home Purchasing Trends in 2015 – Advice from Our Real Estate Agents

Our real estate agents at SAGE Realty LLC have had the first half of 2015 to get a feel for the market and it is become quite evident that although home prices are rising, they are doing so at a much slower pace than anticipated. In contrast, mortgage rates, are currently expected to be on a straight rise upwards. With prices and mortgages high and a short supply of homes, our experts take a look at what is in store for the housing market in the second half of 2015 below.

Homebuilding

The biggest reason for the high price of homes is the short supply, and as it stands homebuilders show no signs of ramping up production for the next six months. Homebuilders want to hold on to their pricing power, especially because they currently face their own hardships including limited credit and a shortage of skilled labor. That is not to say that there will not be any increase in new construction, there just will not be enough to completely solve the supply problem.

What to Expect

  • Low home production
  • High demand for rentals
  • Increased independent lender business

The Future for Renters

Renters expecting to see some improvement should keep their expectations low – although there have been more deliveries of new units and multifamily construction, this creates a high demand and occupancy is at a record high. This means that landlords have more power to control pricing the way they desire and with high rent prices, saving for a down payment will get harder. 

Younger Buyers

First-time young buyers will continue to face struggles in the second half of the year with higher price tags, slow wage growth and high student debt loads. This will affect the market negatively, as the housing market requires these first-time buyers in order to continue to thrive. Without them, the whole process slows down.

Coming Changes

The biggest shakeup to the housing market in the second half of 2015 will likely be an increased focus on mortgage credit availability. With lenders facing stricter regulations and rising rates, they will be hungrier for business. Independent lenders will likely take on more business due to their tendency to be more flexible with credit options. Buyers are anxiously awaiting more competition and less onerous underwriting requirements.

The rising price of houses and short supply of homes ultimately places greater power in the hands of homebuilders and landlords. Renters will have it tougher in the second half of 2015 and until housing production increases, this landscape is not likely to get any easier. For those looking for advice or help, our real estate agents at SAGE Realty LLC can use our knowledge of the market to help you get what you need.

For more information or further questions, give us a call at 610-687-4000.

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I moved to PA from Washington State and learned that realty is local. There were things that I thought I knew about buying a house previously but boy was I wrong. Linda was very patient with me but also did not hold back when she saw potential problems, and always made sure I had all the information I needed before making a decision and didn’t belittle concerns to just get a sale. Above all else, and this was the most important thing to me, Linda has a high ethical standard, is very transparent in her approach and is someone I trusted making one of the biggest decisions of my life. – A. Lindsay (Courtesy of Google)

 

Hear From Our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Sage Buyer Tips

Use Sage Buyer Tips to research the Main Line and stay up to date on real estate news. This online destination is chock full of resources for buyers and sellers: you can see our Main Line communities or explore Sage favorite places. Browse properties here and search other Main Line real estate. With Sage’s advice and experience, first-time buyers and those looking to upgrade can find homes best suited to their needs.