In 2015, we continued to see a very low number of homes available for sale. There are many speculative reasons for this. One theory is that many homeowners who survived the “bust” period have refinanced and decided to stay put. This is based on the average homeowner who usually moves every 6 years has now been in their home nearly 10 years.
Another continuing trend was that of low mortgage rates. While rates rose from a low of roughly 3.6 percent to the 4 percent range, this remains one of the lowest rate environments in history. These low rates continued to make home buying affordable.
There are two wild cards which will inevitably play a significant role in 2016. They may or may not alter the above forecast. These two potentially disrupting events are the 2016 Presidential election and the state of most of the world’s major economies which are in an anemic state at best. Many of these countries are major trade partners of ours and could impact our economy as well.
Originally airing and post on 9News here: