Five Potential Threats to the Housing Market comes from a CNNMoney article about the 2015 real estate market.

Though I hope to see some recovery in prices, there are some potential issues that could derail a hoped recovery. Here is the list from the CNNMoney article, with my take on each one:

1) Investors Cash Out. Meaning, the investors that bought properties when they were at their low to rent them out may decide to sell them while they can see a decent gain on their investment. This could create an influx of listings to hit the market.

2) Foreign HomeBuyers Stop Buying Houses. Apparently, California has already seen this happen, and they tend to see trends hit there before the rest of the country experiences the same issues.

3) Home Prices Rise Faster than Incomes. If home prices rise, but buyers are not making enough money to keep up with that uptick, they may not be able to afford the houses at the higher prices.

4) Mortgages May Still Be Hard to Obtain. If a potential homebuyer had a foreclosure or short sale, their credit may still be damaged. Heavy debt loads also can create difficulty when one is looking to get a loan.

5) Interest Rates Could Climb Significantly. If interest rates climbed significantly, this could create another affordability issue, like home prices rising faster than income. If interest rates rose steeply, then prices could potentially drop steeply, or sales could slow down even further.

Though I hope not to see any of the above occur, these potential issues are possible.

Keep an eye on your local real estate market as well as interest rates, and mortgage news. Ask a professional for assistance.

For more information on the Timonium real estate market, please contact me. I would love to help!