There are still lots of challenges nationally for the housing market however 2016 is shaping up to be one of the best years for housing in a decade and the SEELEY LAKE real estate market is no exception.
It’s been the “Perfect Storm” to be a BUYER or SELLER in the Seeley Lake residential real estate market in 2016. WHY?
FOR BUYERS: Interest rates are still at all time historical lows. Even though home values have continued to increase this last year, thanks to declining interest rates it actually COSTS the same in principal and interest payments each month to buy the same home at a higher PRICE.
Let’s face it, the bottom line for most buyers is, “what will this home COST me each month”? As home PRICES increase and interest rates decline, the home AFFORDIBILITY still remains favorable to a buyer. Low interest rates INCREASE a buyer’s purchasing power.
According to Realtor.com, housing affordability is at a far better level than historical norms; mostly due not only to the consistently low interest rates but also to the more normal historic APPRECIATION rates we have been experiencing over the past several years. If home prices continue to increase at the average appreciation rate of 3.5% annually and if interest rates remain low, buyers can still afford the increases.
Buyers can AFFORD to buy a higher priced home when interest rates remain low.
FOR SELLERS: Obviously with lower interest rates, more BUYERS can afford to buy a home. This is good news for SELLERS! With housing more affordable, more houses should be selling.
Looking at the sales stats from the 2016 NW Regional MLS for the Seeley Lake market:
Seeley Lake is experiencing a significant increase in the NUMBER of residential home sales in 2016. So far this year we have seen 67 residential sales and the year is not yet over. The past decade has averaged 45 residential sales per year.
We are gradually beginning to experience a lack of inventory in the Seeley Lake market; something that happens naturally as sellers take their homes off the market for the winter. However, with the active BUYER interest we are currently experiencing, low interest rates and continuing affordability, SELLERS will be certain to stand out in the uncrowded market this winter.
It’s a great time to BUY or SELL in Seeley Lake!