CHECK OUT OUR 2016 REAL ESTATE OUTLOOK.
A QUICK OVERVIEW OF THE OUTLOOK:
“STABILITY DRIVES CONFIDENCE”
- 1. HEALTHY DEMAND DRIVERS –Â THERE ARE LOT OF HEALTHY DEMAND DRIVERS THAT WILL HELP REAL ESTATE DEMAND IN 2016.
- JOB AND INCOME GROWTH
- MILLENNIALS WANT TO OWN HOMES AND MOST DO NOT OWN HOMES YET
- BOOMERANG BUYERS ARE COMING BACK INTO THE MARKET AFTER PREVIOUS SHORT SALES AND FORECLOSURES
- RENTS ARE HIGH MAKING A HOME PURCHASE MORE ATTRACTIVE
- 2. BALANCED MARKET INVENTORY
- MONTHS SUPPLY OF INVENTORY (MSI) IS BETWEEN 4-6 MONTHS IN MOST COUNTIES SURROUNDING BALTIMORE
- IT IS IMPORTANT TO KNOW THE MSI IN YOUR SPECIFIC NEIGHBORHOOD AND PRICE POINT TO ACCURATELY PRICE A HOME
- 3. RETURN OF PRICING STABILITY
- VALUES HAVE BEEN STABLE
- BUYERS AND SELLERS ARE NOT GETTING VERY HIGH OR VERY LOW NET NUMBERS ON REAL ESTATE PURCHASES
- 4. PREDICTABLE INTEREST RATE LANDSCAPE
- INTEREST RATES REMAIN LOW
- ALL SIGNS POINT TO INTEREST RATES INCREASING SLOWLY
- AS RATES RISE – ARMS (ADJUSTABLE RATE MORTGAGES) MAY BECOME ATTRACTIVEÂ FOR MANY HOME BUYERS.
- 5. RENTS HOLD STEADY
- WITH PRICE APPRECIATION ON THE RISE IT HAS CAUSED MORE MILLENNIALS TO RENT
- VACANCY RATES ARE DOWN AND RENTAL DEMAND IS UP
- RENTAL RATES HAVE BEEN GROWING FASTER THAN HOMES HAVE BEEN APPRECIATING
- LOTS OF MULTI-FAMILY CONSTRUCTION IS UNDERWAY
- 6. GEO POLITICAL WILDCARDS
- LOTS OF INTERNATIONAL ELECTIONS TAKING PLACE IN 2016
- UNITED STATES PRESIDENCY MAY CHANGE EXISTING TAX CODE AND MORTGAGE LENDING REGULATIONS
IT IS A GREAT TIME TO BE A REAL ESTATE INVESTOR. Â AS ALWAYS – PLEASE CONTACT US IF THERE IS ANYTHING WE CAN DO TO BE OF SERVICE!
