Prices Are Falling
Real estate prices have been high for quite some time now. However, in 2016 the price hikes are expected to slow greatly. The rise in real estate prices is expected to only be 3.5 percent. This will give many people a chance to hop into the buyers market for real estate. This could potentially lead to a high influx of buyers throughout the year. There is potential for the sale of six million homes between April and September, which is unheard of. Although there will be a decrease in price, it won’t be drastic enough for low-income buyers. There will also be places, like New York and San Francisco that will continue to have higher prices.
More Homes Will Hit The Market
It will be a buyers market in 2016. Because of the drop in prices of homes, more people will be listing their homes for sale, giving buyers more of a choice. The number of people putting their homes up for sale will rise and so will the number of new homes. More and more builders will be focusing on starter and middle-range homes in 2016 for people just getting into their first home or possibly even second.
Rates Will Be Higher
Cheap mortgages will be a thing of the past in 2016, but most of the rates will be higher. The Federal Reserve is expecting to increase loan rates soon, so the age of low mortgage prices is coming to an end. The mortgage rates will be rising slowly though, so the earlier in the year you can buy, the better.
Rent Prices Rising
Just because 2016 will be a year that rates will be a bit higher and more homes will be hitting the market, it doesn’t mean any rent rates will be any lower. In fact, rent is supposed to stay about the same if not go up in many parts of the country. Even though many mortgage rates are going to rise, buying a home may still be the better deal. Of course, buying a home is an investment, but in most cities buying a home will still be cheaper than renting.
Buying a Home
If you are buying a home in 2016, there are always a few things you should keep in mind. Always use a trusted realtor when you go to buy. You also shouldn’t necessarily buy for the life you live today. For instance, you and your fiancé may buy a home with extra bedrooms if you plan on having children. Also, be sure you are buying the house that you know that you can afford and not necessarily the “dream home.” You can always make renovations.
Either way you have it, if you’re looking to buy a home, 2016 is the year to do it! Happy house hunting!
Photo: Flickr: Dan Moyle