What can we expect from the housing market in 2016? That is a great question. Mark Zandi’s recent Washington Post article, “What’s ahead for the housing market in 2016,” shares some exciting insights – especially for first-time homebuyers.
Here are the key takeaways:
Home Prices Should Continue to Rise
Home values have been steadily increasing since the Great Recession’s big bust. Zandi expects these increases to continue. For current homeowners this is great news.
While this might make prospective buyers a bit hesitant, Zandi also has good news for you. With an improved job market and continued low mortgage rates, he expects buyers to be able to handle the higher prices.
Buying Should be Even Easier for First-Time Home Buyers
Last year the Federal Housing Administration cut its fees, helping make home buying more affordable for first-time homebuyers. It is expected that they will do so again in 2016.
Buying Continues to be More Affordable Than Renting
In 2015, rents across the country rose. Vacancy rates in the Seattle area are especially low. Plus, the cost of renting is expected to keep rising in 2016. This makes buying a home even more affordable on a comparative basis.
You can view Zandi’s full article here.
The Bottom Line
Ultimately, if you are thinking about buying a new home, now is a good time to start looking. This is especially true if you plan to stay in your new home for the next five years or more.
Are you ready to start house hunting? The first step is to get preapproved. Give me a call today to begin the process.
