2016 took off with a Star Wars rocket bang, pushing us into the future at light speed–Does it seem possible that you have been in this new year for almost an entire week?
Palm State Mortgage asks you, “Does it seem possible that we have been in a new century-the 21st-for over 15 years, going into the 16th?”
From many perspectives, it looks like 2016 will be a fast-paced year of financial energy, growth and opportunities for home buyers.
As we promised, welcome to Part Two of Palm State Mortgage Company’s Twelve Mortgage Trends for the New Year.
As we said we would do in our previous blog, we have researched some predictions, reflections and meditations on our anticipated financial trends for 2016.
1. A New Year Normalizing Trend:
We mentioned this last week and promised you more details. Reflecting what experts refer to as the “return to normalcy” for our economy, we see a rise in employment. Because of this we also predict that people will have enough income to purchase that elusive first home or at least upgrade to a better house.
Palm State Mortgage exists to help buyers find lenders who are just the right mortgage fit for their financial situation and we are delighted to be expecting more homeowners in 2016.
2. Mortgaging Millenials Optimized:
How will the various generations interact in the new year to empower the mortgage market? We already mentioned that the millennials, the 25-34 year old age group will increase their desire and ability for mortgage opportunities.
Home buying and mortgage trends among the generations is a development we need to penetrate more deeply than space allowed on the blog last week.
To see the millennial market, we must look at some major factors involving several generations and home purchasing power:
A. The Gen Xers and older boomers will actually both be involved in retirement or at least preparing for it as part of the new year’s mortgage trends.
“Since most of these people are already homeowners, they’ll play a double role, boosting the mortgage and housing market as both sellers and buyers.”
B. We see the Gen Xers at the highest point of their earning careers. So, we know they will be seeking relocation to nice neighborhoods for family growth.
C. “Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”
D. Here is the magic of the Intergenerational Mortgage Trends: The 2016 Millennials can take on financing for the Gen Xers’ and boomers’ former homes! It’s the cycle of life!
“Together, these two generations will provide much of the suburban inventory that Millennials desire to start their own families.”
Be sure you check out the buying power statistics we cited in last weeks blog before you underestimate the financial power of the Millennials.
3. According to 2016 Mortgage Trends–It’s A Good Year To Sell:
At this point, the inventory of available houses is still tight. Given what we just predicted about the various generations, we can deduce that “2016 is shaping up to be the best year in recent memory to sell.
Supply remains very tight, so the inventory of available houses is moving faster.
So if you are waiting for the perfect moment to buy that special house, we advise you to stop delaying.
“Given the forecast that price appreciation will slow in 2016 to a more normal rate of growth, delaying will not produce substantially higher values and will also see higher mortgage rates on any new purchase.”
4. Affordably Priced Homes–A New Mortgage Trend for Builders:
We have to consider 2015 before we can predict 2016 trends. The construction of single-family, “starter homes,” has been neglected this year.
The reasons were obvious: “With land costs, limited labor and worries about depth of demand in the entry-level market, builders have shifted to producing more higher-priced housing units for a reliable pool of customers.”
This 2015 trend of building medium-sized move-ups full of luxury features forced new-home prices to rise quickly. So, builders gradually became more profitable, which is why they will no longer need to avoid building entry-level houses, according to the 2016 Mortgage and Housing Trends.
Here at Palm State Mortgage in Winter Park Florida, we have already begun to see this change for 2016.
Haven’t you noticed those small but simply stylish and economical new homes sprouting from the vacant lots of your Orlando area neighborhood?
5. Improvements in Credit Access:
In addition to more available homes, the 2016 home mortgage seeker will discover a more stream-lined approach to the mortgage process and improved credit access. This is great news for builders because they can see the first-time buyer segment of their industry becoming more attractive.
We join other experts who say, with a little caution, “We’re looking for the strong growth in new-home sales and single-family construction as builders offer more affordable home products in the year ahead. Consumers of all types should consider new homes, but availability will be highly dependent on location.”
Thank you for reading our blog in the first week of the 16th year, of the 21st century. As promised, we will update you with some of the latest looks into our financial crystal ball of 2016 trends in Part 3 of this series, next week. Until then, we think you might enjoy a little light financial reading and research at this reliable online resource.
May the Force of home ownership and financial security be with you in 2016!
