Four predictions about housing market in 2016

Real state in the United States looks like is turning upward after seven years of one of the worst crisis of its history.

Contrary to what the average consumer believe, next year could be better than expected. In fact, in October the constructor confidence index of the home builder’s association of the United States reached its highest levels in recent years, according to Bienes Raíces América report.

It is predicted that the millennials will buy more properties, the number of the so-called boomerang buyers will increase, those who lost their homes due to a mortgage crisis and now the are coming back to pay off a decent loan and a place at reasonable prices.

Millennials: The time to buy has come

The matter has been the subject of debate for a long time, but consensus of leading experts seems to indicate that millennials might boost the real state sector. Those who were born 30 years ago or younger are realizing their financial scope.

The National Association of Realtors estimates that the millennium generation representatives are still the biggest consumers for the second consecutive year. Nowadays one in three buyers is a millennial. That is why their incorporation in the real state market will give a significant boost to this sector. They are more cautious when making investments since they lived the crisis a decade ago.

Boomerang buyers also return.

Millennials are not the only profit for real state sector in 2016; it is estimated that around seven millions Americans lost their homes due to foreclosures during last crisis. But, according to the NAR, nearly 950.000 of these owners who lost their houses can buy a property again, after recovering and showing a credit history that has made them eligible to receive a mortgage without any risk.

There are other predictions, over the next five years over 1.5 millions owners who are currently experiencing difficulties will be incorporated into the housing market. Everything suggests that the wounds of the recent recession begin to heal. On the one hand homes in difficulty sales decline, but property prices increase in several cities in the United States

Loan Facility

The mortgage sector has experienced significant changes over a short period of time. In 2015 the Federal Housing Administration (FHA) reduced the insurance premiums from 1, 35% to 0, 85%. It might not sound much but owners could save 900 dollars annually per insurance. Housing market could benefit from this movement.

In addition, Fannie Mae wishes to facilitate loans process for qualified borrowers. Other good new for the Real State industry is that the mortgage and finance system open its doors to more borrowers. But perhaps it is more important the fact of the implementation of the HomeReady program, which will take account of the income of the other people who plan to live in the house, but unlike before, without including them as borrowers.

That way, if you live with someone that represents at least the 30% of the family income you qualify for a Fannie Mae loan. This program will be very attractive for millennials who decide to buy a property and they also could have providing financial support from his parents.

Constructors trust in Marketplace once again.

The most recent confidence index of the homebuilders fell by 3 percentage points compared to last year, which is a record in the last ten years.

However, single family unit’s sales increased during the final quarter of 2013 and inventory levels are at its highest point.

With the increase in the number of properties in market, it is likely that the assessment of housing will decrease and, at the same time, more people will be able to buy at more affordable prices.

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