At the end of every year, people often wonder what the following year will hold. Here are a few predictions from Knoxville Home Team on what 2015 might mean for the Knoxville real estate market.
Knoxville Real Estate Market Prediction #1 – Interest Rates Will Rise
Over the past few years, buyers have enjoyed historically low interest rates. Unfortunately, in 2015, any buyer in the Knoxville real estate market will likely see an increase in mortgage interest rates. According to a recent market forecast by Freddie Mac, interest rates have been predicted to rise to somewhere in the 5.0% range versus where they have been recently in the 4.0% range. Interest rates are likely to inch up slowly in 2015, so if you want to take advantage of still low interest rates, consider buying a Knoxville home early in 2015.
Knoxville Real Estate Market Prediction #2 – Home Appreciate Rates Will Level Out
Over the past few years, the rate in which homes in Knoxville have been appreciating has been a little sporadic. In 2015, Freddie Mac has predicted that homes will appreciate at a more steady pace. Homes appreciated in 2013 at a rate of 9.3%, in 2014 at a rate of 4.5%, and are expected to appreciate at a rate of 3.0% in 2015.
Knoxville Real Estate Market Prediction #3 – Many First Time Buyers Will (Finally!) Buy
With mortgage interest rates and home prices predicted to rise, 2015 will finally be the year that many Knoxville first time buyers finally buy a home. In addition, with the cost of renting expected to go up in 2015, many buyers who were on the fence about buying may be inspired to buy.
Are you thinking about selling your Knoxville home in 2015? Are you thinking about buying a home in 2015? If so, please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected] or by phone at 865-696-1888.