The housing market is improving slowly but surely, and 2016 is going to be an exciting year for home sales. It is expected that next year’s number of home sales will be just as high as 2006.
It wasn’t too long ago it seemed everyone was under water in their home, and having difficulty selling it. And it was only a few years ago when people didn’t have the credit to buy a house because they had to foreclose on their last one. The recession made it difficult for people to afford a home, too. It wasn’t a good time, but as the saying goes, “This too shall pass.” It definitely did pass, and now it’s time to celebrate.
Realtor.com announced on Wednesday sales of existing and new home sales might reach 6 million. What’s interesting is that people seem to want new homes rather than existing ones. Existing home sales are expected to decrease 3 percent, while new home sales are supposed to increase 16 percent.
The reason may be that builders understand buyers want a more affordable price point for new construction. They’ve made this possible, which is drawing attention, especially from millennials. In 2015, the National Association of Realtors reported 30 percent of homebuyers were 24 to 35 years old. This percentage is expected to increase to around 37 percent in 2016.
Where the Housing Market Will Be the Hottest
Realtor.com identified some of the best cities for home sales. Providence, RI, and Warwick, Mass., came in first. St. Louis, San Diego, Sacramento, Atlanta, New Orleans, Memphis, Charlotte, Virginia Beach, and Boston also were in the top 10.
This is not to say other parts of the nation are not experiencing growth. Home sales are expected to increase for the entire country, which means people will be making moves they wouldn’t have just a few years ago.
Seller’s vs. Buyer’s Market
With the expectation 2016 is going to be a high time for buying, the market will straddle the line of a seller’s and buyer’s market. A buyer’s market is when buyers get a good deal on houses because prices are reasonable and interest is low. A seller’s market is when house prices go up, interest rates are higher, and there are more buyers than sellers.
What does this mean for you?
If you’re thinking of buying a home in the near future, the time to do it is in 2016. Don’t wait because the housing market is changing; take advantage of the market when it’s good. As we’ve seen in the past, the housing market could change for 2017, 2018, or 2019. Get a good deal now, and then you may just sell for more later if the market changes to a seller’s market. You can see how this played out before if you do some research on what happened with the housing market from around 2002 to 2006.
Happy house hunting!