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2015 MLS Chair,
Jonna Aluisi
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Message from 2015 MLS Chair, Jonna Aluisi
Welcome to 2015! I am excited to serve as your MLS Chairman this year. A special "Thank You!" to Bob Wiginton for all his hard work as Chairman the past 2 years and for his guidance and leadership.
Let's take a look at the past year, as well as, the predictions and forecasts for 2015. Though sales have been down statewide in 2014, December gave us a bit of optimism. CAR reported that sales of single-family detached homes for the year, as a whole, ended 7.6 percent lower than in 2013. Positive expectations come from the fact that year-to-year percent decrease in December was lower than the 6-month average of 5.6 percent observed from June 2014 to November 2014. Also, December 2014's monthly rise in sales, at 0.6 percent, was bigger than the long-run.
Nonetheless, the signs, according to CAR economists, suggest 2015 will be positive for housing, which will benefit the overall economy. So while the headlines may focus on noticeably smaller gains in housing prices, don't forget about the large economic impact that will come from a still recovering housing market as it transitions to more normal conditions and higher levels of activity. As we know, housing often leads an economy out of a recession by creating a virtuous cycle of improving housing demand that creates jobs and in turn promotes additional demand for construction.
There are many positives in development. CAR Reports that changes in the mortgage finance environment, including the FHA's announcement that it will lower insurance premiums to 0.85 percent annually, Fannie and Freddie's move to lower down payment requirements, FHFA's clarified rep and warrant framework designed to reduce lender confusion, and Regulators' finalizing of the qualified residential mortgage (QRM) rule. CAR states that these are compelling changes that will help ease lending.
The trend in residential real estate seems to be returning to the classic principles of supply and demand. As this major segment of the economy returns to textbook basics, confidence in the residential sector should continue to rise. 2015 will not be without challenges; nevertheless fundamentals are strong for a healthier housing market moving forward.
Let's make 2015 a pivotal year in our industry! If you have any questions or concerns, please do not hesitate to contact me directly.
"The best way to predict the FUTURE,
is to CREATE IT." ~ Peter Drucker
