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Tyler Sheff | 2016 The Year To Buy A House

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Reasons to take advantage of the housing market this year!

Published in: Real Estate
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Tyler Sheff | 2016 The Year To Buy A House

  1. 1. 2016 The Year To Buy A House Tyler Sheff | Reasons To Take Advantage Of The Market This Year
  2. 2. Heading into the new year there have been a lot of predictions on the housing market. Much of these predictions affirm that if you’re looking to purchase a home, 2016 would be the year to do it.
  3. 3. According to Zillow’s Chief Economist, Svenja Gudell, home prices are expected to rise 3.5%. Now, how exactly does that make it a good time to buy a house? Well the price on homes have been steadily increasing for some time now, at almost double the pace of wages and 3.5% in fact isn’t that much. So, while the price of homes have hit the breaks slightly now is a good time to invest. The Price of Homes Will Increase
  4. 4. Rents Will Continue To Rise While the increase in home prices might be slowing down a bit, rents will not. According to rent.com, vacancy rates are the lowest they’ve been since 1985, currently at 6.8%. Due to an overwhelming demand, and the underwhelming amount of inventory, there leaves little room for negation with landlords. %3% of landlords surveyed that they were more likely to bring in a new tenant, at a higher rate, then negotiate a deal with their current tenant. Landlords have the upper hand in this market, 88% of them raised their rents within the past year. At this point, with rents set to rise by 8% in 2016, people are paying more for rent than they would on a mortgage for a home. Interest rates on mortgages would have to increase to 6.5% for the costs of each to be comparable.
  5. 5. Mortgage rates are still at an all-time low, for now. Mortgage rates have hit as low as 3.25% compared to the average 4.02% in 2014, as depicted in housingwire.com. The Federal Reserve is expected to increase later this year, thus only giving you a few months to benefit from such a deal. Low interests rates will make for a more affordable monthly payment, perhaps more affordable than what you pay in rent each month.
  6. 6. A growing market While inventory has been lacking, specifically for first-time home buyers, we’re likely to see an increase in the coming year. More builders are focusing on development of middle-class and starter homes. With an increase in overall inventory there is less competition in the market from buyers. This will ultimately lessen the likelihood of bidding wars and leave more room for negotiations.
  7. 7. While there are a variable amount of changes coming for the 2016 housing market, much of them are making for an affordable alignment. If you’ve been weary about becoming a home owner, now might be the time to take the plunge.

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