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According to CoreLogic's chief economist Dr. Frank Nothaft, U.S. home sales and prices are up, rents continue to rise, and vacancy rates will stay low - all in 2016.
CoreLogic's newly released 2016 Outlook for Housing, which provides predictions and forecasts for the housing economy, says we can expect to see the following five features in next year's U.S. housing market.
Home sales and home prices will likely increase
Not only is the rental market hot, but overall purchase demand may lift 2016 home sales to the best year since 2007. Nationally, home prices will likely rise at a quicker rate than inflation, but not at the same rate as last year. The CoreLogic Home Price Index showed a year-over-year increase of 6 percent in the last 12 months; however, 2016 is only expected to see increases of 4-5 percent. This increase in home sales and home prices can be attributed to the improved economy, which has enhanced homeowners' feelings of financial security.
Interest rates will gradually move higher
Homeowners who have adjustable-rate mortgages or home-equity loans will most likely see a rise in their interest rate because the Federal Reserve is expected to raise short-term interest rates approximately one percentage point between now and the end of 2016. Fixed-rate mortgages will also rise, perhaps up one-half of a percentage point between now and the end of 2016, reaching 4.5 percent for 30-year loans. Despite this increase in interest rates, mortgage rates will remain historically low.
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
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