With 2015 coming to an end many are staring to make their predictions for 2016. There are many interesting factors that could contribute to the 2016 housing market. One of the biggest factors we face is rising interest rates. The general public is feeling better about the economy, the current lower unemployment rates, and a general increase in new job starts; so many forecasters feel that this will have an impact on housing numbers. Even with a rise in interest rates, interest rates are still at historical lows. Forecasters feel that a small rise in interest rates could get many buyers off the fence in anticipation of additional increases later in the year.
The second largest factor predicted to affect the housing market in 2016 will be millennial buyers. The last several years many millennials have been living at home, with parents and family, unable to find suitable employment and trying to figure out how to deal with their college loan debt. These two situations are beginning to change and millennials are beginning to get out on their own, leaving mom and dad, as they begin to find employment. If true, this market segment could have a huge impact on the housing market in the next few years.
A third important aspect to the 2016 housing market will be the continued rise in general home prices. According to predictions by Corelogic, home prices are predicted to rise 4.7% from July 2015 to July 2016. This is always great news for current homeowners as well as those looking to sell their home in the not too distant future. Like interest rates, rising prices will also have an effect in getting many buyers off the fence.
While no one has a crystal ball, we are anticipating a good, strong year in 2016. If you are in the market for a new home and would like to talk with one of us about your situation, give us a call. We would be glad to help!
Check out the articles below see what other factors may affect the housing market in 2016.
With 2015 coming to an end many are staring to make their predictions
"My wife and I first met Danny Chappell during the 2013 Spring Tour of Homes in Huntsville and Madison, AL, when we showed us one of the new homes the Jeff Benton Cross Creek subdivision. We decided to purchase the home and hired Danny as our realtor. He did a fantastic job and everything went smoothly all the way through closing. We were so impressed with Danny's abilities that we then hired him to sell our old house in Madison, AL. What made working with Danny so nice was his no nonsense, straight forward approach to everything - he talked honestly with us (no BS!) about all aspects of selling a home and his advise and recommendations were always right on the money. What was really top-notch through was his accessibility (always there for us whenever we needed him) and he always immediately followed through on anything we asked for, whether if was information, researching some item of interest, etc.... Danny ALWAYS responded quickly and had an answer for us or had taken action to get us what we needed. Danny kept us grounded with realistic expectations and was with us every step of the way through the entire process of selling our home, from our initial decision to sell to final closing. We have only the highest praise for Danny Chappell and the supporting team at Crye-Leike for all they did for us in getting our house sold in a "buyer's market." We couldn't have asked for a better realtor, and give him the highest possible recommendation to anyone looking for a good house/home-selling experience!"