The indicators that these experts rely on are all looking better for the coming years, starting with this year. Household formations will top 1.25 million in 2016...this is a large driver of new home sales. The rental market is very tight causing rents to increase significantly. Combined with low mortgage interest rates, buying a home looks even more affordable. The " — Home Purchase Sentiment Index" from Fannie Mae has two compelling improvements for December of 2015. First consumer sentiment improved with regard to income, job security, and economic outlook. Secondly, more consumers now believe that it is a good time to sell a home.
This means something significant for first time home buyers as well as McKee Homes in 2016. According to McKee Homes' Director of Sales and Marketing, John Kamin, "First time home buyers are coming into the market and we are well positioned to appeal to them. We offer great plans at very affordable prices and we include features that are optional elsewhere. With special financing available, many buyers will not need a down payment, which can sometimes be a barrier to purchasing."
This is especially good for home buyers in 2016 because most move up buyers need the equity from their current home...and do not want to sell in a "down market". Selling their current home gives them the opportunity to purchase a new home with the features they want.
With an improving economic forecast and the government raising interest rates, most of these experts are predicting mortgage interest rates to be 4.75%-5% by the end of the year. This may not seem like much...but here is what it means.
For the average buyer of a McKee home, the principal and interest payment will be $134 higher by the end of 2016...over thirty years this amounts to $48,240. Or put another way, a buyer could add $28,000 in options today for that same $134 per month additional payment.
The other compelling factor for purchasing sooner rather than waiting is the increasing price of homes. Even Robert Shiller, the foremost housing expert, is anticipating prices rising 4-5%. Based on our average sales price that means prices will go up by almost $12,000 this year. All this bodes well for home builders and home buyers in 2016.
About McKee Homes, LLC:
McKee Homes is a family owned home building business, which offers a friendly home purchasing experience and is involved in numerous local and national charities. They give homebuyers the freedom to personalize their homes with custom options and special features to get the new home they truly desire. McKee Homes is one of the fastest growing new home builders in the area with new homes located in some of the area’s most desirable neighborhoods, offering comfort and convenience only a short drive from the Fort Bragg, Raleigh and Wilmington Metro Areas; exactly where you want to be.
Name: Pat McKee
Email: Send Email
Organization: McKee Homes
Address: 101 Hay Street Fayetteville, NC 28301
Release ID: 101647