In 2016, we as Realtors believe that this will be a good year to sell your home, even more than last. We believe this because of a combination of factors including:
This year, interest rates are expected to rise on mortgages as the Federal Reserve takes steps to keep the economy from overheating. In December of 2015, we saw the first increase, and while it didn’t have a huge impact on mortgage rates, it did drive some activity as many buyers “came off the fence” and started looking in January. We expect this increased buyer participation to affect sales and move the “needle” slightly in favor of buyers.
Still Low Inventory (No Change From 2015)
Last year, a common measure of available homes for sale, or inventory was hovering in the 2-4 month range, which is less than a “healthy balanced market” of 6 months, which will cause prices to rise. In the case of townhomes and condominiums, the inventory number is so low, it has become a seller’s market!
Elections in 2016
Elections are happening this year, and with the increased uncertainty with the coming year, we will likely see buyers who are looking for some “certainty with their housing situation.” I have heard these exact words from buyers and I expect to hear it more in the spring.
Thus far, we have seen a lot more movement in the market than we have in previous years, and it is for that reason that we are suggesting that sellers seriously consider putting their house on the market for sale in 2016.