Predictions for 2016
The year 2016 is already shaping up to be an eventful one. Here’s a look ahead at what is anticipated to happen:
Rising rates – The Fed announced in December that they planned on raising the interest rate and would continue to raise it multiple times throughout 2016. While the rate hikes are not anticipated to put a major dent in the housing industry, we will see the rates increase over the course of the year.
Rising prices – Home prices are also expected to steadily increase although not at the dramatic pace they have in recent years. Prices will still go up but at a much slower rate.
Competitive rent – With rising prices and interest rates, the renting a home will still be the go-to choice for many thereby making this market incredibly competitive. We’re seeing it already with multiple offers on properties even in these early months of the year. Rental rates are also expected to increase this year.
Slowing foreclosures – As we continue our creep away from the year of the market crash, we could maintain a slowing trend in foreclosures. Stricter guidelines in loan processing paired with foreclosure assistance programs throughout the last few years are helping the economy re-stabilize and get homeowners the help they need to stay on track with their mortgage.
More first time homebuyers – The job economy has continued to improve and with this could mean a larger influx of first time homebuyers swooping on the housing market. Many potential buyers have waited until later in life to buy than previous generations as they secured financial status and careers. Now could be the time they enter the market for their piece of the American dream.
Throughout the year, we’ll continue to follow these trends as well as any new ones that crop up.