On February 2, 2016, Inman author, Daren Blomquist, curated forecasts from six different economists specializing in the United States housing markets. Here are the key takeaways from the economists:
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Growing rental rates and moderate home price growth should mean more people look to buy in 2016.
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Mortgage rates will rise which should also help to boost the numbers of buyers.
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Inventory is expected to remain a problem.
Read the entire article at Inman News
At Beverly-Hanks, we continue to pay close attention to national trends but pay even closer attention to the trends occurring in our local Asheville, Waynesville, and Hendersonville communities. Many of the national trends discussed in the article are evident in our local markets.
In our 2015 Year End Market Report (Download A Copy), we suggest that the following trends will shape the real estate markets in 2016.
- Aging Millenials will be increasingly motivated to start their households as they gain full-time work, get married and begin families. Rising rents will help to motivate them to purchase their first homes.
- Lending requirements will ease allowing more borrowers to qualify for home purchases. Unlike the heady days of the last peak, today’s borrowers will need to prove their ability to repay. The mortgage reforms instituted by the Frank-Dodd Wall Street Reform and Consumer Protection Act will continue to shape lending, but as Fannie Mae and Freddie Mac become more confident in the housing market’s recovery will ease requirements on appraisals, sources of down payment, and qualifying income.
- A shortage of desirable inventory will spur new home construction.
- The rate of second home sales will increase as feeder markets in Eastern North Carolina, Florida, and Georgia continues to accelerate. As an example, Haywood County’s supply was 18% lower than the previous year and sales were up more than 20%.
DOWNLOAD THE 2015 YEAR-END MARKET REPORT