What should local home sellers look out for regarding appraisals in 2016?

David Hrobon: The cost of appraisals is predicted to increase next year.

Neena Vlamis: Appraisals, just like in the past few years, will be firm on using recent comparable sales. There is always a difference between what one believes their home is worth and what the actual market will support. If there are recent sales to support value, all should be good.

What’s your outlook on foreclosures?

David Hrobon: Distressed inventories are down, wage and employment numbers have improved, loan servicing standards have improved and property values have increased.  As such, foreclosures should continue to decrease.

Neena Vlamis: Foreclosures are definitely dying down. For a long time they flooded the market. The good thing is that most of this inventory has been swallowed up by the market and the drop in prices because of these foreclosures has for the most part been factored in.

Lending Reform

Anthony Marinaccio predicted widespread delays caused by parties unprepared for the new rules’ Oct. 3 implementation, while Victor Ciardelli predicted increased demand for consumer loan technology products. Loan applications were down in the weeks immediately following TRID’s Oct. 3 implementation, but have since recovered and continue to rise, though low-credit buyers continue to struggle. Most agree it’s still too early to tell what TRID’s true impact will be.

Interest Rates

While Colleen Bara thought rates may increase in 2015, Victor Ciardelli focused on the impact a drop could have on the refinancing market, noting that in Oct. 2014 a rate drop had caused a spike in refinancing activity. This year the Fed avoided increases through Q3, with China’s ailing market and an impending election year being top concerns. As of this writing, the Fed has indicated an increase of 0.25 percentage points by the end of the year is likely, and could have an effect on potential buyers unaccustomed to higher rates – Jeff Gregory told us last year that a rate increase could spur “on-the-fence” buyers to act quickly before another potential increase.