Predicting 2016 and Looking Back on 2015

New Year’s Eve comes with new resolutions, predictions for the year ahead, and recollection of the past year. We know that homes are bought and sold every day, in every season and every weather.  Thus, we are predicting the continuation of market repair and increase.  At the close of the market on Christmas Eve, 2015, the NASDAQ was up 6.60% from Christmas Eve 2014. Our market is on the rise!  This past year was a slow, steady incline in restoration of our economy and housing market, and we will continue to see that trend in 2016.

According to Jonathan Smoke, Chief Economist for Realtor.com, “Realtor.com’s traffic continued to show solid year-over-year growth in November, reflecting strong and consistent demand growth this year.” As of November 2015 in Fairfield County, our market was up 10.4% while the U.S. overall had a decline of 2.4%.  As a whole, the median list price increased for homes this year. In Fairfield County the increase was 7.6%, right over the 7.5% country wide increase. However, our homes seem to be taking a bit longer to sell, at 97 days vs. the national average of 84 days on the market. Generally, 2015 showed a year of increase in our local market.

 

bpt area
(http://www.realtor.com/data-portal/realestatestatistics/Bridgeport_CT)

 

For the most part, the housing inventory is still low which has been driving up the market values in some of our local areas. Many millennials are expected to enter the housing market in 2016. Millennials, with information at their fingertips, are extremely knowledgeable and methodical with their purchases.  Millennials want to travel, see the world, and continue on with a lifestyle they have had for many years.  We will see people pushing out further in to suburbia, to the more affordable towns so they can maintain a certain lifestyle. Rental prices are also on the rise, pushing millennials out of rentals and into their own homes.   This diagram from Zillow depicts the affordability of buying a home vs. renting a home.

 

Q2_2015_Affordability_Zillow_2015_b_02-579f1f-743dc7

 

We have also noticed that the Baby Boomer generation is slowly putting their homes up for sale.  This allows for beautifully maintained homes to enter the market, ready for the next buyer. Where are the baby boomers going?  Many are downsizing in to homes or condos, preparing for their future, and hoping this will be their final move. We will continue to see families moving in together, with parents moving in with their children and grandchildren.

Here are a few of Snyder & Pritchard Homes’ 2016 Market predictions:

Home Prices Will Rise Slowly as Job Security Strengthens and More Buyers Enter the Market

  • Making money means you have more money to spend. Job security and comfort will push buyers who have been on the fence about entering the real estate market “all in” in at full force. More buyers will mean a higher demand for homes!

Student Loan Debt Will Continue to Impact Buyers

  • Student loan debt has previously slowed buyers down but many are now realizing they are set to have that debt for many years and no longer want it to hold them back from buying a home. Many buyers are looking to their parents for down payment and co-signer assistance as well, giving them an opportunity to invest back in to themselves and pay their mortgage instead of their landlords.

Mortgage Rates Will Rise

  • The rise of mortgage rates can do two things: 1) keep buyers out of the market, in hopes that the rates will go back down, or 2) push buyers into the real estate market, in hopes of finding a home before they are priced out. I would go with the latter, buying a home now. You can always refinance if rates go down again! I purchased my first home at 24 (in 2013), with decent rates and just refinanced to a slightly lower rate this year! It was so worth it because I got the perfect house for a fabulous price originally and was able to refinance later on.

Buyers Are Willing to Do More

  • In the world of HGTV, we all want beautiful, newly remodeled homes and it looks so easy! Truth be told, it’s not. This past year, we noticed that more of our buyers were willing to put their own sweat equity in to a home to get more bang for their buck and to get into a better neighborhood. We think this will continue!

 

We are happy to help you if you are looking for a rental, a home to purchase, an investment property, or looking to sell your home!  We also have an incredible network of Real Estate agents nationwide and can help you find (or sell) a home in a state other than Connecticut!

What do you hope to see in 2016 for the housing market and for yourself?

 prediction

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Shoshana Snyder

Shoshana Snyder

shoshana@snyderpritchardhomes.com
203.321.3502

Sarah Pritchard

Sarah Pritchard

sarah@snyderpritchardhomes.com
203.414.5571

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