- Improving economic fundamentals: After an especially harsh winter earlier in the year, the economy picked up steam and produced a banner year for the real estate industry. The GDP this year was higher, and is still trending higher, resulting in some consumer confidence as new home construction increase and first time home purchasers incresase the demand.
- Historically low mortgage rates continued: Mortgage rates remain low despite the end of quantitative easing this year. Global weakness at times, along with a high rate of foreclosures and short- encourages those capital and good credit to buy, buy, buy before rates increase. What use to be location, location, location is not as savvy as leveraging cost vs value and cost vs equity.
- Abnormal home price gains or return to normal price appreciation continues: After two years of abnormally high levels of home price appreciation in 2015 and 2016, it's continued price increases are moderately on the rise throughout 2015, as the demand for housing increases.
- Increase of distressed sales: Foreclosures-short sales increased throughout the year, and while total home sales increased the market is higher in the purchasing of the distressed homes more than in 2015;of non foreclosed homes.
- Investors still are active in purchases: Related to the increase in distressed sales opportunities, higher home prices, portfolios of single-family homes for rent potentially reached their peak in June. Large-scale investors purchased higher in the single-family market sector and continues to increase as a few purchasers are getting pre-approved for mortgages. Investors still outweigh the number of first time home buyers as the economy and jobs market slowly recover. Investors have purchased the majority of low priced housing and will resell in 2017 which will cause the housing market to rise more than 5% as fewer 1st time purchasers are approved due to lower family income levels.
- Rental units are above market value due to the high rate of foreclosures on each block that are causing homeowner general taxes to rise. While school districts are over burdened with some out of resident parents and some other parents that have lived in the district but have lost their home to foreclosure, they are stressed and pressed for their children to continue to get a quality education, therefore, school taxes are increased as well.
So, If you know of anyone give them my number or if you have any questions, please call me at 516-385-1880