2015 is on its way out, and will go out with a bang this Thursday night. With the ball dropping in Times Square later this week, many people are dropping the question: Is 2016 the year to buy? By analyzing current market trends, and forecasting how rates will fluctuate in the coming year, we can confidently state that, yes, 2016 is the year to buy, especially if you’re a first-time homebuyer. In fact, if you were on the fence about buying in 2015, then 2016 is your year to make the leap; and the sooner the better.
First and foremost, home prices will finally calm down on the national level. Prices are only expected to rise 3.5% in the next year, which is a substantial slowdown from years past. Lower prices mean more buyers, and there is potential for over 6 million homes to be sold between April and September. Not only that, but more homes are expected to enter the market in the coming year, with builders focusing on more on starter and mid-range homes. If you are a first-time home buyer, then now, more than ever, is the time to finally make the big decision to own a home.
Now, supply and demand of homes are simple economics, but how do mortgages shake up in the coming year? Well, with the help of TRID, which was enacted earlier in the fall, mortgage terms will be clear as day, per government mandate, so there will be no surprises at the closing table. For first-time home buyers, this is a huge benefit. Mortgages will be clearer than ever, but they will slowly rise during the next year. With the Federal Reserve raising the interest rates by 0.25%, mortgages will slightly increase. The Feds are expected to raise the interest rate even more in 2016, so time is crucial for securing a record-low mortgage rate.
So long as the current patterns hold up, 2016 will be the year to finally buy that home you have been looking at for a while. If you are a first-time homebuyer, than there is no better time to buy than now. However, time is of the essence, as mortgages are expected to rise later in the year, along with an influx of buyers. Now is the time.
Whether you plan to purchase in this year or not, our agents are always at the ready to help with anything you need.