The article, 4 reasons 2016 is the year to buy a home, from www.cnn.com, reports that If you've been on the fence about buying a home, 2016 is the year to take the plunge. Mortgage rates have been bouncing around record lows for a while now. But even though they're likely to start going up, you haven't missed your chance to get a deal on a house. 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.
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.
3. Dirt cheap mortgages could disappear
The Federal Reserve is widely expected to begin increasing interest rates soon, which means the window for record low mortgage rates is closing. "You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of next year, but certainly, the earlier the better," said Smoke.
4. Rents will still hurt
Rent prices are expected to continue to climb in the new year, which means in most cities, buying will be cheaper than renting. Even though mortgages could get more expensive, buying might still be the better deal.
The article, Housing will be back as force for growth in 2016, Arizona economists say, from www.azcentral.com, reports that demographic factors that for years slowed down Arizona's housing industry finally seem to be turning in the state's favor, one of the reasons economic growth should keep chugging along in 2016, economists said Wednesday. Scottsdale-based Elliott Pollack said Millennials and "boomerang buyers" are among the forces creating the best conditions for housing since the boom a decade ago. At the same time, the state continues to improve in attracting technology and finance jobs, offering a measure of higher incomes and greater diversity to the state's economy, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business at Arizona State University. "The conclusion is 2016 ... will be the best year yet for the economic recovery in Arizona," McPheters said. "The takeaway is there's no doom, no gloom but no boom." Over the next year Arizona should see 5.2 percent growth in personal income, 1.5 percent population growth and 2.6 percent job growth, which would translate to about 68,000 additional jobs, he said. Pollack said the state's real-estate markets are experiencing healthy growth. The Phoenix area should have at least 15,000 building permits for single-family houses this year and at least 18,000 next year, Pollack said. Commercial real estate remains soft, but not in all parts of the Valley.