With more and more people obtaining steady work, the housing market is booming. Consumers are actually able to commit to higher rental/mortgage payments without significant fear of quickly not being able to afford the property, such as what happened during the recession of 2008. The year of 2015 proved to be the best year for the housing market since 2007, and market trends are pointing towards 2016 being even better.
The numbers are in, and are already showing promise for this year.
There were over 150K jobs created in January 2016.
Home sales grew .4% from December to January.
The NAR (National Association of Realtors) estimates that it would only take 4 months to sell the current inventory of available homes at the current pace. The “norm” is 6 to 7 months. This is driving up prices, and demand is growing rapidly.
Confidence is slightly down with consumers, as there was a small decline in stock values, but the good news is that mortgage rates have also fallen. This allows consumers to meet loan eligibility requirements which equals more buying power.
So what does this mean?
People will be looking to buy homes! Opportunity for selling your home for above value is likely. Your property will likely not sit on the market for an extended period of time without legitimate offers on the table.
But, if you are a renter, expect rental prices to rise as they have already been doing. It is more affordable to buy than rent in three-quarters of the U.S. Unfortunately, the majority of American renters are not anywhere close to being able to buy a home.