The housing market has come a long way since the Great Recession. As a custom home builder, we know all too well what the economic downfall has done for homeowners, especially those in the Hampton Roads area. A lot has changed in the past eight years, and things seem to be on the up for those in the housing market. Based on top experts and sources in the housing industry, here is what we can expect for the year ahead.
Housing Is No Longer In Crisis
We learned a lot from homeowners who came out to vote on Super Tuesday. The good news: Housing markets in the 12 Super Tuesday states have improved more than the rest of the nation over the last four years. Those states include Alabama, Alaska, Arkansas, Colorado, Georgia, Massachusetts, Minnesota, Oklahoma, Tennessee, Texas, Vermont, and Virginia - our home, sweet home!
Owners, 2016 Could Be Your Year!
Mark Zandi, the chief economist at Moody’s Analytics, recently wrote an article for the Washington Post, which looked at major trends for the housing market in 2016. He believes market conditions should be good for owners looking to sell their homes. Those conditions include an improving job market, continued low mortgage rates and easier credit. Cheers to that!
Costs Are On The Rise For Renters
If you live in Hampton Roads, specifically Virginia Beach, Chesapeake, and Norfolk, you've probably noticed a growing number of apartment complexes being built in our area. This is because demand for rental units has been exceeding supply, with millennials finally landing jobs and moving out on their own and empty nesters looking to downsize. Vacancy rates are the lowest they've been in 30 years, which is why builders are hustling to keep up with demand for available units. What does this mean for renters? The cost for renting isn't just on the rise, it's expected to continue rising throughout the year.
First-Time Homebuyers Are In For A Treat
For first-time homebuyers, the odds seem ever in your favor. The Federal Housing Administration cut its fees last year and is expected to do so again if its finances continue to improve. Fannie Mae and Freddie Mac are also working to lower the credit bar that a lot of potential buyers have struggled to get over.
Home Flipping Is Back... and Booming
According to RealtyTrac and the New York Post, the level of home flipping in 12 markets last year was above the pre-crisis peak set in 2005. In fact, flipped homes - those bought and resold within a year to make fast money - accounted for 5.5% of sales last year, up from 5.3% in 2014 and the first increase in four years.
The problem? Matthew Gardner, chief economist at Windermere Real Estate, says that sales from the rising home flips will artificially inflate home prices, "making housing even less affordable for buyers and increasing the risk of a bubble”.
Virginia Is The Place To Live (and Own)
Okay, we may be a bit biased here, but according to this article by CNBC, based on housing data from Trulia, Virginia's home list price change is up 19.2%. Virginia was not only less affected by the housing crisis, but is among the other Super Tuesday states that have stronger housing markets today than most other states in the nation. Start packing, out-of-towners!
According to Long and Foster, the average sale price in Virginia Beach for January 2016 was 97.7% of the average list price. That is 0.6% higher than it was a year ago.
Our Conclusion
Whether you're a first-time homebuyer or a long-time homebuyer, 2016 is on track to be the best year for buying and selling homes. Now's the time to start planning for your next home, and WeldenField and Rowe Custom Homes is the team to make it happen! Contact us today to get started.