Are real estate trends for 2016 going to make this a boom or bust year? It’s not all sunshine and daisies – but things are looking pretty good so far for the year. What’s trending?
- Prices and mortgage rates are rising.
Gaining since mid-2012, both are still climbing, just at a slower pace than recent years, inspiring confidence and prompting many to take advantage of rates before they continue to climb higher.
- Millennials are driving the market.
Buyers age 25-34 are now the largest share of first-time buyers (68%) and largest share of home buyers overall (38%).
- Urban sales are rising.
Particularly in 18-hour cities as Millennials drive sales back into town from the burbs in search of late-night options.
- Amenities are evolving.
Developers are ditching swimming pool construction in favor of outdoor theater and large, 24-hour, state-of-the-art fitness and spa amenities.
- Beacon technology reduces the need for on-site handholding.
One of the major real estate trends for 2016, Beacon texts area listings, provides detailed information during tire-kicking/open houses, and reduces time consuming one-on-one meetings.
- Regulatory changes begin…
Including the frustrating implementation of TRID (TILA-RESPA Integrated Disclosure), combining four complicated disclosures (The Good Faith Estimate, Initial Truth-in-Lending Statement, HUD-1 Statement and Final Truth-in-Lending Statement) down to two (Loan Estimate and Closing Disclosure), but unfortunately slowing down transactions with financing, appraisal, and inspection issues in efforts to increase transaction clarity for buyers.
- Online funding is moving on up.
Becoming increasingly accepted, especially as several marketplace lenders have been eaten up by consolidations or gone out of business.
- Mortgage brokers are moving in…
As part of real estate agency in-house teams, they’re quickly closing deals and snapping up the best interest rates for buyers.
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