What will 2016 bring?
2016 will see the continuation of many trends that began in 2015
Home prices
will rise more slowly. The growth in prices for 2015 slowed in our area (6-7%) year over year, but we are still higher than the 50 year average of 4.5%. With increasing interest rates there are additional pressure for the decrease in price growth.
Interest rates will likely creep higher slowly. For the first time in 9 years, the Federal Reserve raised the short term borrowing rate this December. They cautioned that future increases would be happening, but slowly.
Inventory will improve as we return to a more stable market. In 2016 we will see very little change in government rules as we are in an election year. The market likes stability and inaction in the government.
Interest rates will likely creep higher slowly. For the first time in 9 years, the Federal Reserve raised the short term borrowing rate this December. They cautioned that future increases would be happening, but slowly.
Inventory will improve as we return to a more stable market. In 2016 we will see very little change in government rules as we are in an election year. The market likes stability and inaction in the government.
-Kris
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