In the monthly REALTORS® Confidence Index Survey, NAR asks REALTORS®“In the neighborhood or area where you make most of your sales, what are your expectations for residential property prices over the next year?” The map below shows the median expected price change in the next 12 months for each state, reported in the October 2015 REALTORS® Confidence Index Survey Report.
REALTOR® respondents from Florida were the most upbeat, with a median expected price growth in the range of five to six percent. In Washington, Nevada, and Colorado, the median expected price growth among respondents was four to five percent.
Nationally, REALTORS® who responded to the October 2015 survey expected prices to increase by 3.2 percent over the next 12 months (3.2 percent in September 2015; 3.0 percent in October 2014). REALTORS® expect the recent strong price growth to moderate as rising prices have made homes “unaffordable” for many, with home prices almost at par with their levels prior to the housing downturn.
The monthly mortgage payment on a home is determined by two elements: the price of the house and the interest rate you pay on your mortgage. Recently released reports are revealing that the experts expect both elements to increase in 2016.
CoreLogic has projected a nationwide 5.2% home value appreciation for the next twelve months. Here is their breakdown by state:
MORTGAGE INTEREST RATES
All four of the entities that provide projections on mortgage interest rates agree: they’re going up in 2016. Here are the predictions over the next four quarters:
Active military and veterans comprised 21 percent of all home buyers in 2015 ̶ a sizable subset worth exploring their purchasing preferences, according to NAR’s 2015 Profile of Home Buyers and Sellers report released in November 2015.
Let’s take a quick look at the demographics for these two groups combined. The median age for this subgroup was 48, whereas active military was typically 34 years old and veterans were 61 years. The median price of a home they purchased was $223,000, which is consistent with all buyers. Twenty-eight percent were first-time home buyers and 81 percent bought previously owned homes. Active military and veterans were most likely to buy single-family homes at 86 percent. However, only 85 percent worked directly with an agent or broker, slightly down from 88 percent compared to all buyers.
Unique Facts about Active Military and Veterans:
18 percent bought multigenerational homes compared to 13 percent for all buyers
21 percent were relocated due to a job compared to only eight percent for all buyers
Median income for active military and veterans is $79,500, which is lower than $86,100 for all buyers
Median home size purchased was 2,100 square feet whereas the median for all buyers was 1,900
41 percent of this group used virtual tours to help them purchase their home, more than any other demographic group
Veterans relocated to three areas of the country more often than any other region, including the West North Central, East South Central, and the Mountain region. These three regions combined encompass the central part of the United States where the states are less densely populated and away from large metropolitan cities on either the east or west coast.