If you’ve been dilly-dallying about buying a home, 2016 might just be the perfect time for you to finally purchase your own residential real estate property. Check out the following reasons why this year might be the year to become a homeowner.
- Home prices might settle down this year.
Although home prices are expected to rise 3.5% according to Svenja Gudell, Zillow‘s Chief Economist, the better part of the news is that things might finally settle this year. No more continuous rise of real estate values — at least, for the mean time. This can create a window of opportunity for home buyers like you to finally snatch up a deal of a lifetime.
- Interest rates are still relatively low.
Another factor to take advantage of is the historic lows interest rates of home loans in the country have hit. The interest rate for a 30-year fixed-rate home loan is currently around 4%, which will never likely happen again in the following years, according to experts.
- Low mortgage rates might disappear soon.
As a result of the impending rate hikes by the Federal Reserve, it’s highly likely that cheap mortgages might become less and less available this year. With higher interest rates comes higher borrowing costs and monthly mortgage payments.
- More homes are expected to enter the market.
In response to the predicted stabilization in home prices, plenty of homeowners might also choose 2016 to be the year to finally list their homes. This will lead to more options in the real estate market — just in time to meet the rise of prospective home buyers this year.
Builders are also expected to focus their development projects on more starter and middle-range homes, which will, in turn, increase the real estate inventory. As a home buyer, what does this mean for you? With more homes in the market, prices could ease more and the possibility of getting involved in a bidding war will become considerably slim.
- Renting is becoming expensive.
It may come as a surprise, but rents have skyrocketed in 2015 and will most likely continue to increase this year with Sun City Lincoln Hills rentals. According to Zillow, rents outgrew home values in 20 out of the 35 biggest housing markets in the country last year. The 2015 Rent.com Rental Market Report also showed that 88% of property managers increased their rent within the past 12 months. For 2016, it’s expected the rent will be raised by 8%.
Are you ready to take the plunge and become a homeowner? Contact us today for a free consultation about that’s in store for you in the
Sun City Roseville CA, Northern California – Sacramento area real estate market.