With 2015 over, it's time to start thinking about what the new year will bring. For many, 2016 will involve moving to a new city or state. However, blindly choosing a new location to live could land you in an area that's lost popularity and housing options. As you begin the new year, keep track of moving trends so you can determine where your new home should be.
A reflection of 2015
In 2015, Oregon, Idaho and North Carolina had the highest percentage of inbound moves, according to the Atlas Van Lines 2015 Migration Patterns report. The influx of people to the No. 1 location, Oregon, is most likely attributed to the state's cheap cost of living and availability of tech jobs.
However, not all states are seeing an uptick in population. Hawaii, New York and Illinois saw the largest volume of outbound moves. Many of the moving migration patterns are also attributed to the retirement of older generations. As baby boomers settle down, they're moving south and west in search of warmer regions.
Expectations for 2016
While the last year saw people moving to warmer climates, 2016 is expected to be a little different - home buyers in the new year are expected to focus more on affordability. This is especially true for millennials, who are looking to buy their first home. Since members of this younger generation will be taking out their first home loans, they'll want a place that allows them to keep a handle on their finances. With this in mind, the Midwest and southern regions are looking like favorable relocation options, thanks to their affordability.
"61% of households think it's a good time to sell."
Time to sell
According to the National Association of Realtors 2015 Home Survey, 61 percent of households think it's a good time to sell. This is in part due to the idea that more people will become eligible for a mortgage thanks to the proposal of alternative credit scoring. Currently, low- and middle-income Americans often have a difficult time securing loans because they have low FICO scores. However, if the Credit Score Competition Act of 2015 is passed, then, in addition to FICO scores, other credit scoring models will be used to determine eligibility.
Along with helping low-income Americans acquire a home, this new bill could benefit first-time homebuyers such as millennials. With this expanding pool of potential buyers, the new year has a positive outlook for those wanting to sell their homes.
Finding a new house
If you're looking to sell your house this year, you'll probably also be purchasing a new one. In a competitive housing market, it's important to be prepared and quick about submitting paperwork and scheduling viewings. Other people are also on the market for a new house, and delaying the home-buying process leaves the sellers open to other offers, which could lead to a bidding war. With this in mind, make sure you're organized and on top of your tasks when finding your new home.