We in real estate are looking forward to a very happy 2016, for several reasons. First of all, it may sound counterintuitive, but having the Fed raise rates slightly is almost always good for business. People just don't seem to take the threat of higher mortgage rates seriously, until they actually begin to go up. That tends to make buyers much more motivated to buy in the short run, as opposed to what they have been doing, which is a lot of looking, waiting, and looking some more.
Another sign of hope is the lack of inventory in some price ranges, and the number of first-time homebuyers out there. As millennials marry and have children, they (often with the help of their parents) will buy homes. Up until now, they've been happy renters. In our area, the math clearly suggests that buying is better. Soon, a new generation will agree.
Locally, we can probably thank GE, but the Governor has definitely gotten the message that residents have choices about where to live, and they have been voting with their feet. The attention on our loss of population, jobs, and allure is getting our state to the point where it feels it needs to respond. And, if it does, more renters who own property elsewhere may buy here, also or instead.
All of these factors make me optimistic for 2016, but, in order for me to be correct, many of you have to agree. Here's hoping that you do!
