Thus far in 2016, the real estate market has seen mortgage rates hovering near record lows, increased home values and significant demand. Also true of the market in the first half of 2016, a low inventory of homes for sale.
It is predicted that this low inventory will continue to be an issue for the rest of 2016. Ralph McLaughlin, chief economist at real estate data firm Trulia indicated, “That has been the biggest story in the last six months and it will continue to be a story for the rest of the year.” The number of both existing homes for sale and new construction homes being built is, and will likely continue to remain, lower than the demand for these homes.
The good news is, mortgage rates are around 3.6 percent and there is no indication that they will be increasing significantly the second half of 2016. In fact, some experts expect mortgage rates could reach all-time lows as a result of global economic factors.
Because of the enticing mortgage rates being offered, coupled with the supply and demand factors, home buyers can expect to pay close to asking price for a home they wish to purchase and should be prepared to act fast. According to an article written by Samantha Sharf and by published by Forbes, “The typical home is selling in just 42 days…” and buyers are paying an average of 95.3% of asking price.
Read the entire article.