If you invest in real estate- whether it\u2019s as a landlord or just the home you live in- 2015 was a good year. Here are a few highlights of what we saw these last 12 months.<\/p>\n
Interest rates were frozen at rock-bottom numbers for almost a decade. The Fed finally announced this month (December) that the rates are going up from 0.0-0.25 percent to 0.25-0.50 percent. Even though this is a small increase in the grand scheme of things, it will lead to two major changes.<\/p>\n
First, this means that next year\u2019s mortgage rates are likely to be higher than this year\u2019s. Even though other markets such as credit cards and bonds will feel a greater impact, expect some movement with long-term loans as well.<\/p>\n
Second, it opens the door for more increases in the future. The Fed is trying to reverse the damage that can come from extended interest rates of near-zero percent, and just one small hike won\u2019t be enough.<\/p>\n
It\u2019s good to own apartments right now\u2026 and unfortunate if you\u2019re renting them. According to MPF Research, the rates for new apartment renters rose 5.2 percent<\/a> from the end of Q2 of 2014 until the end of the same quarter this year.<\/p>\n According to Freddie Mac, the Multi-Indicator Market Index (MiMi) improved by 6.31 percent this year<\/a>. There are several reasons for this, including a favorable employment outlook in the U.S. and rising home prices in homes across the country.<\/p>\n The market has seen this solid growth for several years now, leading many to question how long it will continue. Even though the market is still lower than the pre-recession numbers, there\u2019s no guarantee that home values will reach that point again before another downfall.<\/p>\n Even though most of the country had positive growth, certain areas actually had home values decline. At one point about 25% of homes<\/a> had lost value over the previous 12 months. \u00a0A few of the hardest hit areas were Washington D.C., Baltimore and Philadelphia.<\/p>\nHome Values Continued Solid Growth<\/h2>\n
Some Areas Saw Declines<\/h2>\n
Home Buying is Considered the Best Financial Decision<\/h2>\n