2016 Spring/Summer Market Update5/13/2016
Temperatures are warming up and the Spring Market in breaking wide open. As I had anticipated last year, 2016 has all of the ingredients necessary to prove itself to be another banner year in real estate. Sales have already picked up significantly and many buyers are trying to get a head start before all of the craziness begins.
As of this writing we still have a very low inventory of properties available for sale. As we move forward into the summer months, this may improve somewhat but it will not meet market demand and homeowners will continue to see prices move higher. This increase will not hit every neighborhood or city and it will not be as significant as in 2013 or 2014. Price movement will be in the 3-4 per cent range for the season overall and may hit as high as 6 per cent on some higher end properties. The reason they will capture the best gain is that they suffered the most during the Great Recession. Basically, it's pay back time. To continue to grow or even just maintain a status quo, luxury homes have to keep moving and a reasonably dependable market demand must keep them moving or prices will eventually flatten or begin a slow and almost unnoticeable descent. Time will tell.
Mortgage rates have remained fairly solid and the great rate hike that was the talk of town last year never materialized. The mortgage loan process has slowed down with the new government regulations so, instead of thirty days to close it now takes about forty-five. If you go with FHA, FHA 203K Financing or VA Loans, you may be looking at about sixty days. Government sponsored mortgages take a bit longer due to appraisal, inspection and certification issues.
In summary, it is a "thumbs up" year for both buyers and sellers as well as our overall national economy. Keep your eyes and ears open as election time approaches though.