Economists polled by CoreLogic believe that the economy will continue to grow in 2016, putting the U.S. into the eighth consecutive year of expansion with 2-3% growth, creating downward pressure on unemployment. If such conditions do come to fruition, CoreLogic predicts the following trends in next year’s housing market:
1. Interest rates will gradually move higher
This has been a long time coming as interest rates have been very low for a very long time. Even with a small rise of a half or one percent on fixed rate interest loans, buyers will see their monthly housing costs go up. However, rates will remain very low when you look historically at rates in the double digits. This hike should not be seen as a blow to affordable housing in the least.
2. Household formations increasing
More than one million new household formations will be seen in 2016. Most of these new households will want rentals. This is an opportunity for those looking for investment property for sale in Wisconsin.
3. Continued strong demand for rentals, rising rents
Rental vacancies are low and rents are rising quicker than inflation in many areas. Good news for owners of investment properties, again. Also good for the housing market as it may push potential homebuyers to make the move to take control of their housing costs by buying a property of their own.
4. Existing home sales and prices continue to rise
An improved economy brightens the financial outlook for many homeowners. Purchase demand may increase home sales in 2016 to be the best year for sales since 2007. Stable price appreciation is expected to be in the range of 3-5%.
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com
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Source: CoreLogic Insights Blog