The 2016 Housing Market – Looking like the time to Buy
Happy New Year!! In the Greater Pensacola Region, as we move away from 2015 we move right into Pensacola’s favorite celebration, Mardi Gras. Mardi Gras will officially start on January 8th with a Pensacola Mardi Gras Kick off Celebration at Palafox and Government Streets downtown Pensacola and starts at 5:30 pm. So dust off your beads and get ready for the big parades!
If your interested buying a new home, you just might have more to celebrate in the 2016 Housing market…..
Historically low interest rates: Yes the interest rates have creeped up ever so slightly but they are still historically really low. A 30-year fixed interest rates are still running around 4% – that is awesome! Home buyers should strive to get before the rates continue to rise.
Rents are hard to find, driving rent prices up: I recently drove past a billboard in Pace Florida that said “We need rental properties” and rental searches on the MLS are bleak to say the least. A 2015 Rental Market Report indicated that 88% of property managers raised their rent in the last 12 months and on a national basis an 8% hike is predicated for 2016.
Tax Breaks: Tax laws still favor the homeowner. The most common tax break is the deduction of monthly interest on the loan. Additionally, homeowners are able to deduct certain home-related expenses and property taxes.
Inventory: The Real Estate market experienced a downtown that started in 2006 and home prices steadily declined. Home owners interested in selling choose to wait out the downturn. As real estate values are on the rise, homeowners are starting to get back into the market. Additionally custom home builders are back in action, adding new home inventory into the market.
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