Lately, people have been very cautious when buying a new house because of the way the housing market has been trending. But now, 2016 just might be the year to finally buy your new home. But keep in mind that there are many factors that have to come together to make the market just right to buy that new home.
Housing Prices Are Falling
For quite a while, housing prices have been very high and only going higher. But, in 2016, this rapid rise in prices is expected to slow down quite a bit. For this year, prices for real estate are only expected to rise by 3.5 percent. This slowdown will create the opportunity for many people to finally jump into the real estate market. Potentially, this could create a flood of buyers throughout the year. Between April and September, there is the potential to sell up to six million houses, an almost unheard of figure. Even though there will be some decreases in price, it won’t be so much that low-income buyers will be able to get in. And there will be areas, such as San Francisco and New York, where prices will continue to be high.
More Homes Will Come on the Market
2016 will be a buyers’ market. Because the price of homes will be dropping, there will be more people who will be listing their houses or sale and this will create a better market for buyers. In addition, more builders will focus on middle-range and starter homes in 2016 for people who are trying to buy their first or, possibly, their second home.
Interest Rates Will Go Up
In 2016, the time or cheap mortgages will be over and most of the rates will go up. Because the Federal Reserve is expected to raise interest rates soon, the time for low mortgage rates is ending.
Prices for Rent Are Going Up
Even though mortgage rates will be rising in 2016 and many more homes will be going up for sale that does not mean that rental rates will go lower. Instead, it looks like rents will either stay the same or go higher in much of the country. In fact, even though mortgage rates will probably be higher it is still a better deal to buy a house. As a matter of fact, buying a house is really an investment and, in most towns, it will be cheaper to buy a house than to rent.
Buying Your Home
If you are thinking about buying a home in 2016, you should keep a few points in mind. First, always be sure to use a realtor you trust. Next, don’t buy for the life you are living today. Instead, if you are getting married and plan to have children, consider buying a house with extra bedrooms. Also, buy a house you can afford today. While it may not be your “dream home,” you will be able to make the payments and you can always renovate later when you have more money.
No matter how you look at it, if you are thinking about buying a house, 2016 is probably the best year to take the plunge! Enjoy your house hunting!