Tired of consulting your Magic 8 Ball in order to determine possible new real estate trends you might better direct your marketing resources towards?
We’ve got the latest predictions from experts like CoreLogic, Realtor, and Trulia. Here’s what these oracles are revealing about the upcoming year…
- Will the market return to normal?
The outlook is good. Following the past decade of unstable conditions and abnormal trends, the 2016 housing market is expected to be normal, growing with the economy.
- Will interest rates remain flat?
Don’t count on it. December’s small 0.25% increase following a decade of stagnancy foretells of likely increases to come. This signals a stronger economy and a greater likelihood of banks opening doors to borrowers.
- Will the kids finally move out?
Signs point to yes. Surveys show Millennials are only held back by their ability to purchase, not desire, and the upward trend in Millennial purchases is expected to continue.
- Will Mom and Dad retire?
Without a doubt. Baby boomers will play a dual role in 2016 real estate trends, motivated to sell due to increased demand and higher prices, then quickly downsize to lock-in interest rates before they rise.
- Will home prices rise?
Yes. Increased lending options and demand will drive prices higher – faster than inflation – at a predicted 4-5% rise.
- Will builders pick up their tools again?
Most likely. With more buyers in the market, an increase in new home construction is foreseen, particularly in the market of affordable new homes for young buyers.
- Will rental costs rise?
You may rely on it. Real estate trends continue to contribute to skyrocketing rental rates, leading potential buyers with enough credit to reconsider investing in affordable homes.