Monday, January 25, 2016 / by Tom Nickley
Today, we answer the most commonly asked question in real estate: Is now a good time to buy or sell a home? In 2016, there is a perfect storm of conditions to buy or sell a home here in Central Florida.
For buyers, there are a number of things that make now an ideal time to make a move, starting with historically low interest rates. When the Fed met in December, they raised interest rates slightly and made it known that they will continue to do so. Now is a great time to lock in a low rate before they raise them yet again.
Another benefit of buying now is the affordability of homes in the Orlando area. It's currently 30% cheaper to buy a home than it is to rent one in our area, so now is the time to consider homeownership! Many buyers are coming off the sidelines now, and the longer you wait, the more likely it is that you'll be lost in the crowd.
Lastly, the market is great for buyers because it's easier to obtain a mortgage loan in 2016 than it has been the last few years. Lower down payment requirements, the many down payment assistance programs, and a general upbeat view of the economy all contribute to a friendly lending environment for potential buyers.
Current conditions are also great for sellers. For starters, Orlando has seen 54 consecutive months of home price increases. This is expected to continue for the foreseeable future. It's worth noting that current home values are 59% higher than they were in January 2011. This has given a lot of people equity and put them in the position to sell their homes and make a lot of money!
Secondly, rising interest rates brings a lot more buyer demand for homes. The more buyers there are looking for homes, the faster you can sell yours!
Lastly, the market for sellers right now is fantastic because of lower inventory levels. At the end of 2015, we saw five consecutive months of inventory decreases. The more competition for homes for sale, the more multiple offer situations; the more multiple offer situations, the higher price homes are sold for. This environment is fantastic for sellers.
If you have any questions about buying or selling in the Orlando area, please don't hesitate to reach out to us. We would love to hear from you!