Planning to sell or buy a house in 2016? If you are, you need to keep an eye on important real estate trends which may or may not greatly affect your decision. Home prices and interest go up gradually every year, so what will the trends be for the new year?
Supposedly, the prices of homes will continue to rise. According to Zillow, the values of homes will moderately rise to an average of 3.5 percent. Of course there are certain aspects that will affect the prices of homes. One of these aspects is location. Location is very important when deciphering the price of a home. On the other hand, interest plays a big role in the housing market. According to Zillow, interest is bound to rise this year, which may dampen the housing market.
Mortgage rates will also rise due to a decision by the Federal Reserve to raise interest rates this past December. With higher rates, this will mean higher monthly payments but it could also motivate homeowners to sell which could be an answer to the shortage of houses. Rents are also bound to rise which may make buying a home more appealing and which will make it difficult for struggling renters who pay every month, Houston Agent Magazine reported.
Many home buyers are looking for environmentally friendly homes that are energy efficient. According to a study by Dodge Data & Analytics for the National Association of Home Builders, more than half of the builders, as well 39 percent of remodelers, are working on green projects and this is expected to rise.
To find out about the home buying or selling process be sure to contact our team of professionals. We can offer answers to any questions you may have, as well as advice to make the process easier. If you have any questions about the Lancaster County trends for 2016, give us a call!