Everyone has their own opinions and factors as to whether they are motivated to buy or sell a home. In any event, here are four reasons why you may consider jumping into the housing market for 2016:
1. Dirt cheap mortgage rates could disappear: While the mortgage rates have been bouncing around at the all time low rates for some time, the Federal Reserve has indicated they will begin to increase the interest rates soon. This means the window of opportunity is closing for those who have not jumped into the housing market.
With rates expecting to go up gradually, this pushes up the borrowing costs and monthly mortgage payments which ultimately lowers how much money a buyer can borrow to purchase a home . For buyers, the sooner you get qualified and make a purchase the better rate you will have!
3. Home prices are projected to calm down: The supply of homes compared to the demand to purchase has made a tough market for buyers. We still continue to see pockets of multi-offer situations which can take a toll on the buyer. The good news is there has been a steady but safe increase in sales and prices consistently month after month. This will continue into the new year.
The more sellers that enter the market today will give the buyers that are waiting for the perfect home a better chance of pursuing their dreams of home ownership. If prices are rising safely and rates are still low, the sellers are happy and so are the buyers, it's a WIN-WIN for everyone.
4. More homes to hit the market: If there is a slowdown in home prices, this will in-fact prompt more sellers to list their homes. As we have had a steady increase in sales and pricing, this will give the buyers more options to choose from, possibly leading to more multi-offer situations again!
5. Rent prices are increasing: Rent prices have steadily increased throughout the year leaving little to no options available, which means it can actually be cheaper to buy than it is to rent. Additionally, there are many tax benefits to purchasing a home verses renting a home.
As I have said before, please call a local Realtor for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It's best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.
Lisa DiBiase is a broker/owner. She and her company represent buyers and sellers in the Greater Portland area. For all your real estate needs contact firstname.lastname@example.org.