Perhaps you already know an extra hour of sleep can make a huge difference. In the same way, an hour in the housing market makes a difference. Each hour in the United States will register sales of approximately 624 homes, 118 homes will regain positive equity, and the value of median homes will go up by $1.84. For a home seller/owner, this is clearly good news that each hour your property will regain positive equity. For home buyers, this means that the more you delay, the more the payment for your home.
Since 2007, 2015 was the best year in the housing market, and the projections here are that 2016 will be even better. With the US economic growth chugging along, the rate of employment will keep increasing. That means that home buyers will have more funds coming in, and they will have the power to upgrade to a new home or buy their first one.
According to experts, the US housing boom is not ending soon. Certainly, not in 2016! As depicted in the infographic, unless there is an absolute pickup in wages, housing affordability could morph into a very serious issue. In fact, a deterioration of housing affordability will be a major drive in 2016. So far, there is an unclear sense of direction for wage growth. As such, home renters and buyers could face major difficulties in housing.
Since the housing bust hit bottom four years ago, prices have been rising steadily higher. That means; homeowners will experience another year of solid gains. Housing prices will reach close to the all-time peaks experienced in the housing bubble a decade ago. However, this season prices are on a solid foundation where they are fully supported by homeowner’s incomes.
Market conditions will no doubt be excellent for home sellers. The historically low number of homes for sale makes it more of a seller’s market. Many homeowners seem to have a psychological antipathy to make sales until prices recover, so this could be the time for owners looking to sell. Home buyers will have to grapple with high prices, but should benefit from low mortgages, easier credit, and an improving job market.
With the economy set to gain employment in the near future, the wage growth is picking up. Although there will be a slower pace than 2015, healthy growth in home sales will be felt. The other shift in the housing market is that the already unaffordable rents will experience a rise. Rental housing has become crushing in most states. In fact, more than 85% of the US markets have rents exceeding 30%. More so, rents are increasing more rapidly than home prices.
Due to limited savings, credit scores and lack of documentable stable income, for the majority of renting households buying is not a near option. If that trend continues, the health of the housing market will keep deteriorating. With the difference every hour makes in the housing market, making a bold and quick move will be the solution.
If you qualify for a mortgage, and you have enough funds for a down payment as well as closing costs, you will benefit financially if you buy immediately. Explore the inventory now if you intend to buy a home this spring, and reach out to a local realtor. For more details visit http://bit.ly/1pcACI1.