What’s ahead for the housing market in 2016

Let’s consider the major macroeconomic trends in 2016 that will significantly impact those stakes.

Homeowners should enjoy another year of solid gains in house prices. Prices have been moving steadily higher since the housing bust hit bottom four years ago and should post another gain in the middle single digits. With a bit of luck, prices nationwide could reach close to the all-time peaks seen in the housing bubble a decade ago.

First-time home-buyers, in particular, should have an easier go of it. The Federal Housing Administration, the government agency that primarily helps first-timers get mortgages, cut its fees last year and may do so again soon as its finances continue to improve.

For renters, 2016 will be a difficult year, as rents continue to rise strongly in most parts of the country. The problem is that demand for rental units has been outstripping supply, and vacancy rates are now about as low as they have been in 30 years. Fueling demand are the millennials who are finally finding jobs and striking out on their own, along with households that have lost their homes in foreclosure, and more empty-nesters looking to downsize and simplify.

read more at: https://www.washingtonpost.com/realestate/a-look-at-the-trends-that-will-impact-the-financial-stakes-in-housing/2016/01/06/44de14ce-9d16-11e5-a3c5-c77f2cc5a43c_story.html?tid=pm_realestate_pop_b

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