4 reasons 2016 is the year to buy a home
A number of factors are coming together, making next year a good time to buy:
1. Home prices will finally calm down
Real estate values have been on the rise for a while, but are likely to slow their pace next year. Prices are expected to rise 3.5%,according to Zillow’s Chief Economist Svenja Gudell.
Buyers who’ve been stuck behind the wave of rising prices may finally get the chance to jump in.
And that could lead to a flood of buyers, said Jonathan Smoke, chief economist at Realtor.com.
“We have the potential for about six million home sales just through the months of April through September; that is basically impossible to do,” he said.
But not everyone will be in a position to take advantage.
Despite the slowdown, Zillow still expects home values to outpace wage growth, which can make it tough to afford a home, especially for lower-income buyers.
Plus, prices in the country’s hottest markets — like San Francisco, Boston and New York City — aren’t expected to pull back as much next year.
2. More homes will hit the market
The slowdown in home prices will prompt more owners to list their homes, Smoke said, giving buyers more choice.
“Because of the price appreciation they have experienced, you will have more sellers put homes on the market next year,” he said.
The new home market is also expected to grow in the coming year with builders focusing more on starter and middle-range homes, which will also boost inventory and make it easier for buyers.
With more homes on the market, bidding wars will become less common and prices could ease even more.https://money.cnn.com/2015/12/04/real_estate/2016-real-estate/index.html?iid=SF_LN