Like 2013, inventory was still on the tight side this year, and while it decreased slightly due to buyer demand decreasing slightly, multiple-offer situations were common. While home sales tracking has revealed significant drops in Aug. 2014, the numbers increased slightly for the remainder of the year, showing that homes for sale will probably remain at a consistent level through the winter, and increase in the spring when the market heats up again. The number of homes on the market all remained well below 2013 levels, but the rise in the number of customers requesting tours with Redfin agents, which went up approximately 2 percent, was enough to suggest a strong showing in the weeks leading up to the inevitable holiday decline.

Although mortgage rates will inevitably increase, they are still quite low, keeping home sales and homebuyer competition strong into 2015. In addition, Fannie Mae and Freddie Mac recently announced the option for first-time buyers to buy with as little as 3 percent down. While it’s unlikely the change will provide any sort of overwhelming assistance to people currently having trouble securing a loan – especially considering how widely available the 3.5 percent option from FHA remains, and Millennials, on average, maintain a savings of -2 percent – this option for qualified borrowers at least could motivate first-time buyers to enter the market, helping to strengthen home sales in 2015, and slowly, over time, it could ease a larger pool of homebuyers into the market.

Builder confidence has incrementally increased within the past few months – it raised four points in November, from 54 to 58 nationally – but in the Midwest, it actually decreased two points, down to 57. However, with such a minimal decrease in confidence, the developers on our panel weren’t worried about what that could mean for 2015. If anything, they believe confidence will start to steadily increase, especially with the improvements in the job market/income sector – although Millennials may not be ready to buy anytime soon, experienced buyers will have the stability and confidence to buy new construction, since competition with existing homes is still fierce.

Click through to the next page to see who is on our expert panel, and continue on to see what their predictions are for 2015.