Last year, the spring selling season failed to meet market expectations, with sales of new and existing homes in 2014 mostly flat. The dismal selling season last year was most attributed to continued weak consumer confidence, steep home price increases from the previous year, and an uneven economic recovery, The Wall Street Journal reports.
But housing analysts believe 2015 is different. Here are a few reasons why:
- An improved economy: The economy has added 3.1 million jobs in the past year alone. Low gas prices lately have helped to lift consumer confidence.
- Mortgage lending is easing: Lenders have shown signs of easing tight borrowing requirements and costs (see FHA Lowers Its Mortgage Costs and 3% Down Payments May Be Game Changer).
- Boomerang buyers return: Former home owners who had lost their home to foreclosure in the aftermath of the financial crisis have repaired their credit and many are stepping back in to try to qualify to buy a home again.
Source: “Housing Market Sees Hopeful Signs of Spring,” The Wall Street Journal (April 9, 2015)