2016 Economic Forecast
Last week we attended multiple economic forecast presentations. My personal takeaway: more of the same once again for the local housing market. Sound a little familiar to the past few years?
The fundamentals for our local housing market remain strong as we enter 2016. We have strong employment and population growth, we have low inventory with affordable house prices relative to the rest of the country (see chart below) and we have pent up demand in multiple buyer sectors.
This year we are primed to see:
- First time home buyers enter the market as rents continue to escalate
- Boomerang buyers reenter the market with new sense of market confidence (buyers sidelined from the market due to a previous distressed mortgage)
- An increase in move-up transactions as prices stabilize, a bit
Market concerns for 2016:
- Global uncertainty (economic, political)
- Oil market decline
- High labor costs for new home construction
- Mortgage interest rates on the rise *
* Rates were predicted to go up last year. Though they fluctuated throughout the year, we ended the year where we started (around 4% for a 30-year fixed). It’s important to note that while many economists are projecting an increase in rates again this year, the mortgage companies I listen to suggest they’ll remain flat again this year!
Which brings me to, if you are considering a move this year, I’d love to visit with you about how we can help! This year’s market will once again be competitive and having an experienced agent on your side will be critical. Call, text or email me now and let’s make your move happen together!