"Cautious Optimism" is the 2016 Theme
There are a couple of things to look forward to for 2016 in the housing market:
- An improving economy means an improving housing market.
- Rates are still low and lenders are considering broader credit conditions. Bonus: These conditions can lead to an increase in housing demand.
- Owners who were foreclosed during the housing bust are now back in the market.
- Millennials are among the biggest group with purchasing power because of the improving job market.
Things to be cautious about:
- Factoring in taxes, mortgage insurance premiums and the cost of potential home repairs in order to truly calculate what you can afford.
- Correct any credit report errors before starting the lending process.
- Adjustable rate mortgages won’t be as desirable as fixed-rate mortgages due to rising rate conditions
- Local housing market recovery still varies widely throughout the nation, so it’s best to get familiar with your local market conditions. (Hint: The Richmond market is thriving in 2016!)
Check out this article, by Jill Schlesinger, from the Money section of Time.com that goes into more detail about what to expect and why!