Home Artisans of Indiana member Phil Hotle from 21 Century Scheetz weighs in on the 2016 Housing Outlook:
“2015 was a year for sellers and 2016 is expected to be similar. Though it is likely that we will see about 1.26 million new households built, the inventory of homes available will still be less than the demand. As for the price of homes, the average is predicted to rise 4-5 percent. The mortgage rates, which have been low in the last few years, are slowly being raised by the banks. Together with rental demand also rising, it is likely that home sales and home purchase loan rates alike will keep increasing over 2016, even as the refinancing volume decreases.
Tax benefits still abound. The largest tax break for ordinary taxpayers who qualify remains the exclusion on capital gains for the sale of personal residences. Single taxpayers are able to exclude a maximum of $250,000 in gains from a home sale. Joint filers will receive double that: $500,000. With these motivations driving sellers, and the impeding rising of interest rates motivating buyers, 2016 appears to be another advantageous year for sellers.”
For help in purchasing or selling a home, reach out to member Phil Hotle, 21 Century Scheetz.