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MILLENNIALS,<br />
MORTGAGE RATES AND<br />
NEW CONSTRUCTION:<br />
2015 MARKET OUTLOOK<br />
millennials, lending trends,<br />
new construction and a<br />
strong commercial outlook<br />
topped the discussion at our 2015<br />
Market Outlook in January.<br />
Jonathan Smoke, chief economist at<br />
REALTOR.com, forecasts a slightly<br />
stronger economic performance and<br />
more substantial increases in existing<br />
and new home sales.<br />
Jonathan smoke<br />
Looking forward to<br />
2015, Realtor.com is<br />
forecasting slightly<br />
stronger economic<br />
performance and more substantial<br />
increases in existing and new home sales.<br />
The gains in housing activity will be<br />
driven by the improving economic<br />
conditions, especially employment-related<br />
douglas Johnson<br />
Chief Economist<br />
REALTOR.com<br />
opportunities that will enable millennials,<br />
the largest generation in history for the<br />
U.S., to enter home ownership in more<br />
significant numbers. The Chicago<br />
metropolitan statistical area is following<br />
the overall U.S. trend and will also see<br />
growth in first-time buyers enabled by the<br />
market’s relatively strong levels of<br />
affordability.<br />
Managing Director<br />
CBRE Auction Services<br />
Douglas Johnson, Managing Director,<br />
CBRE Auction Services, predicts the<br />
markets in general will continue to<br />
improve in 2015, and David Wolf,<br />
President, Related Realty, says new<br />
condo development is beginning to<br />
increase in pace and project size.<br />
Continued job<br />
growth, low interest<br />
rates and moderate<br />
increases in Gross<br />
Domestic Product (GDP) will serve the<br />
U.S. commercial real estate market well<br />
in 2015. Good markets and good market<br />
fundamentals make most real estate<br />
investors look fairly proficient at their<br />
craft and 2015 will be no exception.<br />
However, real estate investing is not<br />
for the faint of heart and is never easy.<br />
Investors will be faced with many<br />
obstacles in 2015, including a scarcity<br />
of Class A Core product that will lead to<br />
capitalization rate compression for these<br />
highly sought after properties.<br />
We have more of their predictions at<br />
www.ChicagoREALTOR.com.<br />
david Wolf<br />
Throughout 2014,<br />
we started to hear a<br />
lot of chatter about<br />
developers planning<br />
new construction projects throughout the<br />
city. New condo development has officially<br />
started taking place and is beginning to<br />
increase in pace and project size. However,<br />
President<br />
Related Realty<br />
we are still about three years out from any<br />
large scale developments delivering new<br />
product in Chicago, and at least one year<br />
out from completion for medium scale<br />
new construction projects.<br />
37 www.ChicagoREALTOR.com
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