In the CNN Money report "4 reasons 2016 is the year to buy a home" we learned that all cash purchase transactions declined significantly in the Q3 as reported by CNN commentator Kathryn Vasel. The simple response to this data point is more affordable homes are becoming available to first time buyers.
A different point of view, however, is the smart institutional money has left the purchase market as home prices have risen and target capitalization rate cannot be achieved. Aka there is more risk and the opportunities just aren’t there for the big investors.
This position is further evidenced by the ongoing consolidation in residential rental market where institutional property owners are merging to scale and maximize returns through reduced costs. Where they once held multiple properties, they are now consolidating.
Looking back, home price appreciation is positive but as learned not necessarily lineal. Its goes up and down. Today’s homebuyers don't really trust this nor want to think about it. Instead, they want and need to embrace homeownership in the context of the New American Dream, which means empowerment through choice, flexibility and transparency to allow homeowners to live life as it happens even in down markets. +Plus down payment protection provides this. Just like investors and banks are protected so can the modern homebuyer.
With +Plus down payment protection, 2016 will be a great time to buy as inventory becomes available and rates still remain really low.