Current Housing Market in the U.S

By Ana H.

The housing market in the U.S. indicates how strong the economy is at a certain point. After the Great Recession when the Government set tighter mortgage requirements for home buyers, 2016 is a year when more people seem to be willing to buy a house or a property, to redecorate or to modernize their homes.

The interest rate is the most important thing which interests us when buying a home. The analysts’ expectations are about the rates increments but only reported to a long period in the future. Thus, the impact won’t be perceived on the housing market. The only impediment could be that some homebuyers may qualify with more difficulty for the desired mortgage program.

Since the last years brought more homes on the housing market, the offer is quite large and the number of mortgage and loan programs as well. The offer depends on the season you may buy in, the place of the property, the type of the construction etc.

Another important thing to be valued when buying a home is the price. The prices in the housing market in 2016 seem to be on the upswing and the analysts predict that the prices will continue increasing, but very slowly and slowed down compared with the previous years. Prices will remain at a competitive level since there is a great number of listed properties; so this year and probably the next one too, it won’t be any dramatic increase of prices on the housing market.

Trends in 2016 seem to show a greater interest in buying than renting, so the market conditions are favorable to homeowners who intend to sell. As for the buyers, the most favored are the first-time homebuyers since the Federal Housing Administration has cut its fees in 2015 and it seems to have a new cut this year as well.

The renters are less favored in 2016 because the rents continue increasing strongly and the analysts’ opinion is they will continue to rise all along this year.

Having, on the one hand, a rebound of the sales on the housing market and on the other hand, more affordable mortgages (because the fees' reduction) the general idea at the mid-2016 is that the homebuyers started (since last year) spending more and that more first-time homebuyers have been encouraged to enter the market. So, since it’s easier to buy, it’s also easier to sell and 2016 is a great moment to make a move on the housing market.