If you have plans to purchase real estate as an investment in 2015, you are not alone. Real estate offers many benefits as an investment—leveraging through financing, tax deductions, capital appreciation, rental income and more. This year, however, will bring some changes to the real estate market that buyers should be aware of. These are among the top trends that investors should be aware of before putting their money into real estate in 2015.
photo credit: Flickr Creative Commons via Mark Moz

Low Interest Rates

Interest rates are a prime topic on news channels, and this will likely continue. The Federal Reserve is largely responsible for the interest rates, which remain close to historic lows. The Fed has indicated that there will likely be an increase in the coming year due to the fact that the economy has largely recovered and stabilized after the downturn in 2007. While rates may be nudged higher in 2015, the adjustments to rates will likely be slow and moderated. Therefore, you can expect to find low rates throughout 2015.

More Buyers

Over the course of the last few years, there has been a rush on real estate in many markets. Buyers saw great deals on foreclosures. In addition, there was a general feeling of urgency with buyers to take advantage of low real estate prices as prices in many markets recovered. In 2015, the prices in many markets will stabilize, and there will be more buyers. This is because both baby boomers interested in downsizing, and millennials who are interested in buying their first property may be more present this year than in previous years.

Buyer’s Market

The mad rush on real estate and the feeling of urgency to make an offer quickly in 2015 may be gone, despite the fact that there will be more buyers. This is because there are also expected to be more properties on the market. Buyers generally will have the feeling that they need to find the best deal, and not be rushed into buying a property. They may feel that if they miss out on one property, they can always find another one.
 
Generally, the real estate market has been in recovery mode over the last few years. In many markets, the recovery period will end, and there will be a return to normalcy through stabilization in this next year. With this in mind, it appears that the upcoming year will be a great time for potential investors to make an investment in real estate in many markets. The information for this article was provided by the professionals at Jakob Pek, who specialize in real estate limited partnerships.