Four reasons to buy a house in 2016

Do not despair if you did not have time to buy a house in the outgoing 2015 year.

CNN Money outlined four reasons why in 2016 it was best to buy a house.

1. Housing prices will “calm down”

Rising real estate prices that were felt this year are likely to slow down next year. Prices on average will rise only by 3,5 percent, which means that buyers who previously could not afford to buy a house will be able to proceed to the consideration of proposals. Also, the purchasing power of Americans is also influenced by the growth of the labor market, the average wage. All this can lead to competition and high demand for housing.

It is worth noting that prices in the real estate market in San Francisco, Boston and New York will be as high as ever.

2. The choice will be more

The slowdown in housing prices helps to revitalize the market and increase the range. Thus, people will have something to choose from. The new building market will also grow next year and will become more accessible for buyers.

Large supply in the real estate market may lead to a slowdown in house prices.

3. Mortgage rates will decrease

The Federal Reserve is expected to raise interest rates in the near future. If this happens, the population can count on record-low mortgage interest rates.

4. Rent is still high

The rental price is expected to continue to rise in the new year. This means that in most cities the purchase will be cheaper than rent.

Even if the mortgage will be more expensive, the purchase will still be more profitable than the rent.

Interest rates when buying a home should rise to 6,5% to equal the rental rate.

Earlier, Forum wrote that in November was created 211 thousands of jobs. This gives a firm assurance that the Federal Reserve will raise interest rates. This number of jobs in November exceeded all expectations.

Wages are also starting to increase. The average hourly rate increased by 2,3% over last year. This figure is lower than the October one - which has risen to the 6-year low - but it is better than the wage growth at the beginning of this year.

In October, the unemployment rate fell to a seven-year low of five percent.

If you are you in search of work, the Forum described in detail how and where to look for work in the USA and cited real people's stories as examples.