Many real estate experts expect 2016 to be a strong year for home sales. There are a number of market factors that can impact the buying process for new home buyers who are looking for a new home this year. New home buyers should understand the real estate market as much as possible in order to obtain the best available deal when buying a home.
Congress and state legislatures continue to tinker with the mortgage laws in an attempt to make the market more stable. However, these new laws can complicate lending and make loan approvals more difficult. While getting a loan is not as difficult as it was in the recent past, lenders are still cautious. Buyers need to be certain to have a good credit rating and an adequate down payment before starting the home buying process.
Numerous Home Sales
2016 is shaping up to be a big year in real estate sales for various reasons. The improving economy will help younger people be able to afford to buy new homes, while older folks will be able to move up in homes. A thriving real estate market will likely mean that homes will sell quickly and there will be a lot of competition among buyers. However, as selling improves, more owners will become sellers, helping to keep homes available on the market to satisfy demand.
New Home Availability
Home building trends are showing builders intending to construct more houses in 2016 than in previous years. In addition, builders appear to be building smaller homes that are geared more toward first time buyers and older people looking to move down in home size. As the new homes enter the market, they will be competing with existing homes and should result in lower prices. Many home builders offer discounts for buyers who are willing to commit before the home is built.
Interest Rate Uncertainty
Interest rates are still near historic lows, but most economists believe they will increase in the near future. As rates increase, the total cost of buying a home will increase making monthly payments higher. The largest impact will be on higher value real estate, but higher interest rates may make it difficult for new buyers to afford a first home. As rent rates are also expected to increase, home buying will become more of a bargain compared against renting.
Though real estate markets go up and down, there are always great deals available. New home buyers need to be ready financially to make the purchase and carefully study the national and local real estate markets to find the home that is right for their family and their budget.
About the author: Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking and gardening. See if you can get further advice on finding an interest rate you can afford with a Coldwell Banker George Realty office. For more information contact Brooke via Twitter.