The year of 2015 may have been the best year for housing since 2007 and, according to a recent real estate forecast by realtor.com, 2016 will be even better. One of the main reasons for the positive outlook is the projection that employment will continue to rise which will bolster consumers and allow them to purchase a home or upgrade to a new home.
Realtor.com highlights the following housing predictions for 2016:
1) A return to normal
A healthy growth in home sales and prices is predicted, but at a slower rate than in 2015. Jonathan Smoke, realtor.com®’s chief economist, wrote, “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” Distress sales will return to normal levels and new construction will progress at a pace you would expect for a stable market.
2) Different Generations will play new roles
Millennials will be entering the market as first-time buyers, while the boomers have, and will continue, to retire and downsize in locations that are comfortable and suit their lifestyle. Gen-Xers are in the zenith of their careers and will upgrade to nicer homes or relocate for their jobs.
3) Builders will focus on more affordable homes
With the growth of the first-time buyer segment and the downsizing of retirees, builders will feed the demand for more affordable new homes. With credit access also improving, this is a positive shift for those who have been waiting for the right time to buy a new home.
4) Mortgage rates will begin to rise
A long time coming, mortgage rates will begin to increase at a manageable rate. Higher rates will push up monthly mortgage payments and steer buyers to act swiftly and make home buying decisions before the rates rise again.
5) Rents will increase past mortgage rates
Because of demand, rental rate increased rapidly in the past year. This trend is expected to continue, making home buying a more affordable option. However, for many renters, poor credit scores have, and will continue to, make the transition to homeownership a difficult one.
For more information see “The 5 Real Estate Trends That Will Shape 2016,” realtor.com® (Dec. 16, 2015)
Need help? Call The Trembley Group at 843.945.1880 ext. 100 and we’ll help you look for the perfect listing or buyers agent!
At The Trembley Group, we pride ourselves on being the experts at more than just selling real estate. We are local residents, some of us have been here for a lifetime. The rest of us will be here until the end of time. We love living, working, and playing in the diverse backyard of Coastal Carolina, and look forward to helping you live and love your dreams soon too. Please reach out to us by phone or email for personalized service and one-on-one advice.