What to Expect from McAllen Real Estate in 2016

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Today we’re going to recap 2015 and go over what to expect from the McAllen real estate market  in 2016.

In 2015, we sold a ton of homes. However, we are not selling homes like we did between 2006 and 2008, and probably never will again. Back then, lenders gave out loans to people who could not pay them back. We had another peak in home sales in 2010 due to tax incentives. People bought homes to save a few thousand bucks. If you take out those two unsustainable peaks, you can see that in 2015, we performed well with home sales.

Houses have always been considered a great investment because real estate typically outpaces inflation. According to the federal government, in 2015, inflation is at 0%. Meanwhile, home prices appreciated by 7.3% in McAllen. As you can see, real estate is a great investment.

Now, let’s talk about what you can expect in 2016. If you take a look at building permits, you can understand how many new construction homes will be coming onto the market. In the last 12 months, we have had 3,873 new dwelling permits, which includes everything from apartments to mansions. In the same timeframe, 6,900 new jobs were created. That’s 1.78 new jobs per new dwelling, so we have underbuilt the market. That means you can expect property values to go up and rent prices to increase.

Housing is still affordable in McAllen. If you look at the median household income from 2014, it was $34,801. The median home price in 2014 was $116,400. The numbers for 2015 won’t be out until August, but McAllen is a beautiful area and still affordable.

Many people think now is the time to sell. They are absolutely right! If you’re thinking about selling on your own, check out this statistic that released from the National Association of Realtors: in 2015, only 8% of homes sold were For Sale By Owner properties. In the same year, 89% of homes sold were handled by a real estate agent. That 8% For Sale By Owner rate is the lowest we’ve seen in McAllen’s history. In today’s market, you need an expert advisor.

Here at the Ryan and Brian Team, we know our market. If you have any questions, give us a call or send us an email. We would be happy to help you!