June Housing News
Experts predict steady, healthy growth in the housing market based on first quarter data. What does that mean to you?
- For homeowners, this news offers reassurance that homes prices will continue to rise at a steady, maintainable rate.
- For homeowners considering a move, a steady, healthy market is an excellent time for a transition.
- For renters, this is a good time to buy. Renters will spend less money on housing by purchasing a home than renting.
Housing is expected to fuel growth in the economy in 2016.
- Freddie Mac experts predict that seasonal growth in new construction and steadily rising home prices will boost the housing market.
- According to Gallup, investors who typically select stocks are looking to real estate for better returns.
- Inventory and demand are beginning to balance out. Inventory has been low and demand high, increasing home prices and pricing first-time homebuyers out of the market. More homeowners are beginning to recognize that they have the equity they need in their homes to sell, increasing inventory. As supply and demand balance out, home prices regulate and the housing market growth continues at a healthy rate.
Cost of renting as compared to buying continues to increase demand.
- Median asking rent is continuing to rise.
- Mortgage affordability is 6% lower than from 1985 to 2000.
- While interest rates are rising, they will not reach 1985 to 2000 rates.
- Mortgage affordability is currently 15% lower than rent affordability.
- Total home sales by month above where they were last year for the same month.
- While some reports show a slight decline in annualized new home sales last month, the speed at which new homes went from completion to sold was better last month than any time in the past year.
- Number of houses under contract shows that the market is not slowing down.
- CoreLogic expects prices to go up 5.2% this year.
Sales data shows a healthy housing market.
Interest rates are rising slowly and are predicted, according to Freddie Mac, to reach as high as 5% by the end of this year. However, if you compare interest rates to any time over the past few decades, interest rates are still very low. If you are considering refinancing or a move, locking in an interest rate now would be wise.
To learn more about the housing market and discuss refinancing, selling or buying, contact us today. We would love to help. To keep up with important housing market updates, follow us on Facebook and LinkedIn.