Tuesday, December 22, 2015 / by Derek Gutting
1) It has been studied and determined that the real estate market shifts every 7 to 8 years. Do you recall the last shift? How could you forget right? 2007 it began, but hardest felt in 2008. What is 7 to 8 years after that? Exactly!
2) It is rare during a Presidential election year for any MAJOR shifts or changes to occur.
3) Lawrence Yun, chief economist of the National Association of Realtors®, is predicting that more sellers will sell their home in 2016 taking advantage of their increased equity to buy their next home. He expects real estate sales in 2015 to finish at a pace of 5.30 million and then expand 3 percent to around 5.45 million in 2016. While 2015 was a nice breakout year for sales, it is expected to continue in 2016.
4) New Home Starts & Sales. It is widely predicted that new home sales will continue to rebound in 2016. Lawrence Yun forecasts single-family housing starts to close out around 1.1 million this year and reach 1.3 million in 2016, which is still below the 1.5 million he says is needed each year to keep up with current demand. New-home sales are likely to total 505,000 this year, and increase to 590,000 next year.
5) Of course.. interest rates are rising. As the rates increase, this should create a strong push of buyers that were sitting on that 'proverbial fence' to actually get off and buy a home. While rates will still be at historic lows in 2016, millennial's do not know rates above the 5% range.. so this fear of 'higher' rates should increase their urgency and buyer demand throughout the year. Yun foresees the U.S. to start slowly entering a rising interest rate environment in coming months, with the Federal Reserve already increasing short-term rates in December, and then again in March. He expects mortgage rates gradually moving upward towards 4.5 percent by the end of 2016.
If you were thinking of selling.. these are my Top 5 reasons to make it happen in 2016 and get the highest price possible while selling in the shortest amount of time.
Derek Gutting, Gutting Group Real Estate Services, Keller Williams Realty, www.GuttingGroup.com