The 2016 Housing Forecast is predicting a healthy real estate market for the coming year!
"The 2016 housing market is forecasted to be mainly a SELLER'S Market, filled with increasing home prices, relatively low inventory and fierce competition between BUYERS, says Jonathan Smoke, chief economist for realtor.com®.
BUYERS looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs.
For SELLERS, it's about understanding the ins and outs of their local market so they can optimize the price of their home and close quickly.
Here are some Top Tips for Smooth Transactions from realtor.com®
Here are the top tips for 2016 HOME SELLERS:
- List during peak season. Unlike buyers, demand benefits SELLERS Prime home buying season begins in April and reaches its peak in June, according to realtor.com® analysis of home sales. SELLERS who list their home during the prime SPRING and SUMMER MONTHS benefit from a larger population of BUYERS and potential bidding wars, which often result in higher prices and faster closings.
- Price a home to the market. In 2016, prices are expected to increase nationally 3% year over year. SELLERS who work with a local REALTOR® to optimize the price of their home based on its unique features and surrounding neighborhood are often able to receive the highest price for their market an sell more quickly.
- Offer incentives. Last year 37% of all SELLERS offered incentives to attract BUYERS. SELLERS who are open to negotiating beyond price are more likely to find scenarios that result in wins for both sides resulting in a potentially FASTER SALE and MORE SELLER PROFIT!
Here are the top tips for 2016 HOME BUYERS:
- Be the early bird. Over 85% of BUYERS who plan to purchase in the next year indend to buy in the SPRING or SUMMER of 2016, according to our most recent realtor.com® survey. With roughly 50% more listings inventory relative to the number of potential home sales expected in January and February, BUYERS who start their search early face less competition with nearly the same number of homes.
Comparison shop for mortgages. Morgage rates are expected to reach 4.65% and prices are predicted to rise 3% year over year in 2016! BUYERS planning to finance their purchase should put as much effort in getting the right mortgage as they do finding the right home. A lower interest rate can make the difference in qualifying for a home and save thousands over the life of the loan!
- Consider a new home. In 2016, the number of new homes on the market is expected to grow more rapidly resulting in a 16% increase in new home sales year over year. BUYERS should consider the new home options in their market; they are likely to have less competition and to enjoy a broad selection of homes. While new homes are typically higher in price, they are usually larger and offer performance advantages and warranties that could reduce operating and maintenance costs.
- Buy a home in the Midwest or South. The biggest issue expected to hold BUYERS back this year is an inability to find a home in their price range. Considering a home purchase in the Midwest or South may be a good option for those who really want to close in 2016.