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2015 Real Estate Forecast

Welcome back, everyone. Today we are going to give you our 2015 market forecast. This information will be very useful to you as the year goes on, especially if you're thinking about buying or selling. In order to know about where we are going, it's important to know where we have been. Here are some of the numbers from 2014, split into 5 important categories:

Sales in Silicon Valley peaked back in 2012, when we sold over 18,000 homes. In 2014, we sold a little over 16,500 homes. While the number is going down, it's still a healthy figure, based on our inventory.

Back in 2010, we had 5 months of inventory, and that was the closest we've been to a balanced market. Since then, we have been on a decline, and we now only have about 1.5 months of inventory available, putting us in a hot seller's market. 

Median Price
The median home price has skyrocketed in the last few years. In 2010, the average home cost around $450,000, but with steady appreciation, including an increase of 19% between 2012 and 2013, the average price is now near $725,000. This appreciation can't be sustained for much longer, however.

Interest Rates
Mortgage interest rates are around 4% right now, but are projected to be near 5% by the end of 2015.


Affordability has decreased substantially over the last few years. In 2013, 50% of people could afford homes. That figure has dropped to 20% so far in 2015. 

So what do these numbers mean for 2015? Here are our predictions for what will happen this year:

  • We expect sales to increase, by about 2%.
  • Home prices are going to appreciate, but by just about 6%.
  • Interest rates will rise to near 5% .
  • Affordability is going to continue to decrease.

If you have been considering making a move, 2015 is the year to do it. With such low inventory, you'll be able to sell your home quickly and for top dollar. If you are buying, home prices and interest rates are expected to rise, so the home you may qualify for now could be a whole lot nicer than the one you would qualify for in a few months

If you have any questions for us, be sure to give us a call or send us an email. We look forward to hearing from you!


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