Real Estate Market Appreciation Predictions for 2016

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Today we’ll be talking about the Home Price Expectation Survey, which is a nationwide panel of economists, real estate experts, and investment strategists. It’s got a lot of interesting data and I wanted to share some of it with you today. 

Our average annual appreciation since the market crash in 2007 has been a healthy 4% per year. This is a steady increase, and this report expects homes to appreciate by 3.9% this year. Looking into the future we’re going to see more steady appreciation rates around 3% per year. 

Let’s look a little further into the future. What kind of appreciation can we expect by 2020? The bulls are predicting a 30% increase in values, while the bears are predicting a 13% overall increase in values. All projections combined are predicting a 20% increase in home value by 2020. 

Prices are rising, so it’s a great time to be a homeowner. If you’re buying, then right now is a good time to ride out this wave of appreciation. Please don’t hesitate to contact me if you need help buying or selling in 2016!

What Direction Is the 2016 Market Heading In?

Buying in Southeast Michigan? Perform a full home search

Selling in Southeast Michigan? Get a free Home Price Evaluation

Today we are going to talk about what’s in store for the real estate market in the near future. The latest interest rate projections are in from Fannie Mae, Freddie Mac, the Mortgage Banker’s Association, and the National Association of Realtors. 

If we take all of these projections and average them out, you can see that rates are likely to rise a full 1% from where they are now by the end of the year. We’ve been waiting for a while for rates to creep back up, and it looks like 2016 is that year. If you get ahead of that as a buyer or seller, you’ll be in a much better situation.

The people that are most affected by interest rates are first-time buyers, with move-up buyers being the second most affected. If you fall into one of these categories, realize that interest rate increases are coming, and they are going to have a huge impact.

According to Zillow, 70% of buyers are going to continue with their buying plans regardless of whether rates jump or not. The other 30% are going to change their plans if and when rises come. In addition to this, 45% of buyers would consider a smaller home or less expensive community in the event of rate increases. We don’t want you to have to do that.

You need to get out into the market now, when rates are low. If you have any questions for us about how to get your plans in order, give us a call or send us an email. We can’t wait to hear from you!