With Thanksgiving, Black Friday, and Cyber Monday under our belts, the holiday season is officially in full swing and we couldn’t be happier about it! 2016 has been a whirlwind of a year, and on behalf of everyone at Alpha Mortgage, we are glad that we were able to make so many dream home ambitions a reality. So what’s going on in the housing world? We’re here to update you on what’s happening now, what to expect, and the best gifts to give your home the extra love it deserves this holiday season.
What’s happening- A Recap
As many of you know, mortgage rates have stayed relatively low for the past few years, and the market has favored sellers. Why? Recently, the housing market has been in high demand with very tight supply across the nation, which led to a new peak in home prices nationally in September 2016, according to CNBC. You know the deal- sellers can list as-is, and usually, drive up the price of the sale due to multiple offers because demand is so high.
Here’s the update- in early November 2016, mortgage rates raised for the first time since January from about 3.94 to close to 4.10. Why? A little thing called the United States of America’s Presidential Election. Don’t panic, the rates were the same at the beginning of 2016.
The FHFA also raised their conforming loan limits from $417,000 (which has been in place since 20016), to $424,100 which will be effective January 1st, 2017, and that means that house prices are going up enough to qualifies you to borrow more money starting in the new year.
Oh, and tiny homes are still a thing.
What to Expect
A holiday housing freeze- it is normal for sales and prices of homes to drop in the Winter months, following in suit of dropping temperatures, as well as increased spending on other things (hello holiday shopping). Longtime Realtor Kim McElroy explains to Realtor.com that “Typically, sales do slow down somewhat in the winter just because the focus is on the holidays and a lot of people do take their houses off the market,” says longtime Montgomery, AL-based Realtor Kim McElroy of Keller Williams Realty. “But I see a spike of interest and calls right after the holidays.”
Longforecast predicts that the 30-year mortgage rate for December 2016 will increase by 1.41% averaging a rate of 4.33, and also predict that January 2017’s average rate will be 4.28 or a -1.15% from December.
Expect the housing market to swing in the favor of buyers in the next 2-3 years due to increased supply from builders taking advantage of the lack of homes available.
Top 5 gifts under $250 to make your house a home
- Satechi iPhone Charging Stand – $25- Amazon- This is a great stocking stuffer for anyone who Facetimes, Cooks and uses their phone for recipes, or multitasks in general! It comes in 4 different finishes that match each phone color.
2. Ring Video Doorbell Pro– $249 – Amazon- See, hear, and speak to anyone at your door from your smartphone, tablet, or PC and get instant alerts when visitors press the doorbell.
- Nest – Learning Home Thermostat– $249 – Amazon – Nest automatically adapts to your life, as well as when the seasons change. All you have to do is use it for a week, and it programs itself!
- August Smart Lock– $229 – Amazon- Use your smartphone to lock, unlock, and monitor traffic on your doors.
- Kohler Moxie Showerhead and Wireless Speaker– $92.50 – Amazon -Stream music playlists, news, and other audio in the shower.