While the past year may have been somewhat tough on home buyers in terms of rising prices, 2016 deserves some accolades, too. That’s because, according to a recent report from the National Association of Realtors, 2016 was also the best year in the past decade for sales of existing homes.
Throughout the 12-month period between January and December 2016, approximately 5.45 million existing home (i.e., homes that have been previously lived in) sales took place in the U.S. This is the highest figure since back in 2006, when nearly 6.5 million existing homes sold. In December 2016, the median price for an existing home was just above $232,000. This represents an increase of 4 percent over December of the year prior.
One reason for this increase in existing home sales may be due to the continued housing market recovery – which had home prices at historical lows in 2008, and for several years thereafter. In addition, according to a Realtor.com senior economist, incomes have also been rising – which has led people in large part to feel more comfortable with home affordability.
Yet another key factor could be that the historically low interest rate environment that we’ve been experiencing for nearly a decade, may finally be coming to an end. So, with the fear of increasing mortgage rates – which in turn, can lead to higher monthly principal and interest payments – many have decided to go ahead and move forward and lock in before it is too late.
If you’ve been considering making a move, but you aren’t quite sure where to start, Contact Us. We can provide you with all of the details that you need in order to get your current home sold quickly – starting with a no obligation home value analysis.