2015 has been a year of steady real estate market growth in some areas and rapid growth in others.
Here is what you can expect if you are buying or selling a home in the year ahead:
1. The market should change as interest rates rise – As the Federal Reserve begins to increase the short term interest rates, mortgage rates are also expected to rise. The Federal Reserve has kept the rate at zero since 2008, so a change will certainly shake things up. Agents, add additional information here regarding the results of the 12/16/15 interest rate announcement.
2. The inventory challenges of 2015 will not disappear in 2016 – On a national basis, there has not been enough new construction housing to combat the need for more housing in rapidly-growing markets. Therefore, inventory will still be a challenge in 2016.
3. Expect new documents and different closing timelines – There was new legislation that went into effect in October which combined the mortgage disclosures from the Truth in Lending Act and the Real Estate Settlement Procedures Act. The goal in doing this was to make mortgages more transparent and easier for consumers to understand. However, expect the closing timelines to be different than in the past and for some types of loans, longer along with different paperwork.
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