In 2015, we saw a promising housing market emerge. More and more buyers came out of the wood work ready to take the plunge to bettering their lives. Purchasing a home was no longer intimidating but a promising investment, not just for money but for continuing their dreams. So, what does the housing market look like for 2016?
For the past couple of years, housing prices have been on the rise. However, projected numbers show that those prices will begin to plateau making it more affordable for buyers. Chief economist for Realtor.com projected the potential for almost six million home sales to happen from April to September in 2016. Although prices may plateau, purchasing will still be out of reach for some low income buyers. But with lower prices many who could not afford a home this year will be able to use their savings to purchase one in 2016.
As housing prices stabilize, we’ll see an influx of homeowners beginning to list. This will give home buyers an array of choices and less chance of a bidding war. Builders are now concentrating on starter and middle-range homes which will also provide buyers a variety to choose from.
Mortgage rates are at historic lows. But with the Federal Reserve gradually increasing rates, mortgages will rise. So now is the time to take action. As they say, the early bird catches the worm.
Lastly, rent will still be ridiculously high due to millennials and previous homeowners dominating the renting market. We’re seeing that in some areas buying is cheaper than renting. So, get out of that overpriced loft and into a spacious and affordable home!
In short, housing prices will plateau, there will be an influx of houses on the market, interest rates will gradually rise, and rent will still be insanely overpriced. Let’s reign in the new year with a great market and an improved perspective on home buying! Call Coastlend Mortgage if you need more information on what’s to come in 2016.