The economy continues to improve, which is a huge relief after the Great Recession. Real estate professionals need to be ready for these changes if they want to serve their clients better. Realtor.com made some predictions about the 2015 real estate market. Like all predictions they may or may not come true, but one thing is definitely going to change: the HUD 1 settlement sheet.
Predicted Housing Trends For 2015
Realtor.com foresees five important changes in the market in the new year:
1) Mortgage rates will rise as the economy improves. Economists predict as early as mid-year, the Federal Reserve will nudge up interest rates and that will affect mortgage rates. We expect this to lead to a surge of purchases and refis as consumers try to get ahead of the higher rates.
2) Millennials will become the largest group of homebuyers. These young buyers have limited credit histories and will have difficulty with today’s credit standards, which are tougher compared to a few years ago.
3) New home construction will increase, especially single-family homes, but will still be limited by labor and material shortages.
4) High credit standards will continue to hold back the market. Real estate professionals will need a good understanding of the lending options if they want to put their clients into new homes.
5) Foreclosure inventories will drop as the last vestiges of the mortgage crises fade.
Changes To Housing Forms
One change that the market will definitely see is a change in the paperwork associated with the purchase or sale of a home as the HUD-1 settlement statement is replaced by the Loan Estimate and Closing Disclosure forms. The simpler documents developed by the Consumer Financial Protection Bureau will become required starting on August 1, 2015.
Easy Soft will be releasing a major update to Easy HUD to accommodate these new forms. You will get the same power and easy-to-use features you have been using for years, but will be able to print the new CFPB documents instead of the hold HUD forms.
The market is always changing, which is why it’s important to stay current on financial and consumer trends at all times and not just at the beginning of the year. However the New Year is a good time to evaluate the market and your practice to ensure your business is still relevant to market conditions. Trust Easy HUD settlement statement software to change along with you and offer the best tools you can find for real estate closings.