The real estate market is definitely looking better and real estate analysts are predicting 2016 to be one of the most exciting years the market has experienced in a long time.
Realtor.com predicts 2016 to be better than 2015, and that’s saying a lot! If you didn’t know, 2015 was the best year in the real estate industry since 2007. This includes the Oviedo real estate market. With a rosier outlook coming our way, let’s see what the experts are anticipating for the next few months in realty.
Better Jobs Means Better Sales for Oviedo Real Estate
Oviedo real estate and other real estate properties throughout the state and the country will be experiencing better real estate sales because the job market is expected to continue to grow. When there is more valuable jobs and more desirable positions, there is more money in consumers’ pockets. Buyers than feel more comfortable about actually following through to buy their first Oviedo real estate property, move up to another home listed on the Oviedo real estate rolls, or buy a second property.
Oviedo Real Estate Homes Sales Will Move at a Healthy Pace
A return to a more normal real estate market is a good thing. Chief Economist with Realtor.com Jonathan Smoke points out that a slower selling pace in 2016 is just the industry balancing itself out to hit a more normal growth rate in sales and prices.
Buying from All Generations
Oviedo real estate in the last year or two has been coming from young adults buying their first homes. Now that there is more economic stability, those older adults who may have taken a hard hit during the housing bust are recovering and could be more active. Additionally, retiring adults wanting to downsize may be selling and buying their Oviedo real estate as they shift their living circumstances to suit their changing lifestyle.
Affordable New Construction
More affordable new construction is coming, say the real estate experts. In the past, land costs were high along with limited labor and concerns about buyers.
This year, new construction home prices are forecasted to drop to more affordable levels as builders start to focus more attentively to the increase of entry-level buyers. With the easing up of credit restrictions for first timers entering the Oviedo real estate market and other properties, buyers and builders will benefit from more sales and better prices.
Rising Rent Rates May Continue to Exceed Home Prices
According to rental reports, more than 85 percent of real estate markets across the country have rental costs that are over the monthly income for those renting these properties. Analysts are not expecting this to change. In fact, in most of the nation’s rental markets, rent rates are expected to continue their upward climb.
Home prices are rising but at a much more moderate rate than rentals. Realtor.com says ¾ of the nation’s real estate markets have more affordable housing buys than rentals.
Interest Rates to Rise
The historically low interest rates are likely to move up, as the Federal Reserve push them up higher. Predictions are for 30 year fixed mortgages to rise approximately 60 basis points higher than current levels. However, these will still be within manageable levels.
