The first-time-buyer market remains strong and many Millennials have entered the market. Rental rates have risen, creating an incentive to purchase investment properties in order to rent them out.
Residential home sales in Greater Hartford and Connecticut have been good this year, with pockets of towns experiencing extremely active markets while some others maintain varying levels of activity.
Statewide, single-family home sales have increased 5.7 percent since October 2014 and should continue to increase over the next year. The great news is that interest rates on home loans have remained stable and at a rate that was not seen for decades.
The first-time-buyer market remains strong and many Millennials have entered the market. Rental rates have risen, creating an incentive to purchase investment properties in order to rent them out.
The increase in cash purchases will continue into 2016 as investors look for stability and income through real estate vs. stock purchases. Jobless claims are at their lowest levels since 1973 and are a positive influence in the marketplace and will continue into 2016.
Federal Housing Administration financing guidelines for condominiums have been adjusted to make condominiums easier to finance in a late-year change that will affect 2016 condo sales.
The biggest concern for 2016 would be interest rate increases by the Federal Reserve Bank, which could affect the marketplace. Also, there is a lag between changes and seeing effects.
If the Fed increased rates but did not see a negative effect on the market, they might raise rates again only to learn the damage had been done and was now exacerbated. This could slow a market that has taken years to gain the momentum it currently has with steady upward growth in terms of sales and buyer confidence.
[See what others are saying on HBJ's Economic Forecast 2016 page]
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