Residential Lots for Sale: The Best Time to Buy and Sell is Right Now

April 13, 2015 by:

Residential lots for sale have long been hot commodities in Cape Coral, Florida. Over the past few years, the market has been characterized by steady growth and high transaction cost averages that have accompanied recovery. These trends are set to continue according to recent projections by industry observers.

 

The mortgage loan group Federal Home Loan Mortgage Corporation (also known as Freddie Mac) said in its latest report that extrapolating from developments in the first quarter of 2015, the volume of home sales will be the best since before the subprime crisis in 2007, citing generous mortgage rates, good prices, and a healthy credit market along with increased pending home sales and purchase applications as the primary drivers of growth.

The report also forecast 2015 economic growth at 2.6 percent. Sellers and buyers alike are expected to benefit from low interest rates throughout 2015, due in no small part to lower oil prices as well as global geopolitical unrest and nuclear diplomacy keeping inflation in check. In addition, the end of the very cold winter means that there would be a looming demand for home sales in the succeeding quarters, with numbers estimated at 5.6 million transactions for the whole year.

The flip side of the vibrant recovery over the past few years is that base prices for residential land for sale are expected to rise, making affordability worse come the latter part of the year. This is expected to lead to fewer good bargains by the tail end of 2015. Complicating matters is that the changes in supply and demand brought about by the demographic shift indicate that compared to their forebears, Millennials still haven’t fully embraced their potential as a significant source of housing demand.

Most importantly, the 2015 market is expected to be influenced more by income, job growth, and household formation than by national price crashes. Since the post-recession recovery is still showing no signs of stopping, the outlook for real estate this year is brighter than ever.

Interested homeowners and prospective purchasers who wish to take advantage of the current golden situation are encouraged to get in touch with a veteran real estate agent like Kevin Page of Cape Coral Lots. Such a professional can help both sellers and buyers with their transactions as well as ensure the best results for everyone involved.

(Source: Freddie Mac Releases Its U.S. Economic and Housing Market Outlook Report for April 2015, MultifamilyBiz.com, Apr. 10, 2015)

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