If you have been waiting for the right time to buy a home, 2016 might prove the year to take the plunge. It’s looking good for several reasons.
There’s a good chance that you are among many potential buyers waiting for home prices to finally slow down. You may also be tired of hearing the same sales pitch: “Prices will only keep going up. No time is better than now.” If you’re in this boat, then you’ll be glad to hear that while Zillow’s Chief Economist Svenja Gudell predicts prices will rise about 3.5 percent, others such as Realtor.com Chief Economist Jonathan Smoke see a slow down in price increases. This would certainly make it more attractive to buy a home, taking time to get the one you really want.
More affordable home prices and more interested buyers could in turn could bring around more sellers, Smoke says. Ideally, this could give buyers more choices and lead sellers and home builders to compete for their business with special pricing and attractive offers.
And interest rates aren’t expected to drastically rise in 2016, though you might not want to wait too long. The Federal Reserve recently announced an increase in short-term interest rates by at least a quarter of a percentage point. Additional increases are expected by at least one percentage point each year unless the economy shows signs of faltering. While this may sound troubling, it shouldn’t impact interest rates on mortgages enough to make much of a difference in 2016. Interest rates, though, could increase the longer you wait, so if you are in the market for a new home, you might want to move soon.
Consider, too, while the market value on homes appears stable, the cost to rent has gone up. According to HousingWire, 88% of property managers increased their rent prices in the last 12 months and 68% of these managers are expected to charge higher rates in 2016.
These are just some of many reasons why 2016 might be the year to make your move. If you’re interested and have any questions, leave a comment on our social channels. Also, contact us and visit any of our model homes and we guarantee that you’ll be impressed with the quality of Rainey Homes compared to other home builders. Have a great 2016 and we hope to see you soon!