Things are looking good for real estate in 2016! With a stabilized market and confident consumers, this is the year to buy or sell a home. Read on for more details on 2016 real estate trends and how you can benefit from the state of the current housing market.
1. The return of normalcy
Once upon a time, the housing market seemed reasonably predictable. According to Realtor.com, home prices will continue growing this year, but at a steadier pace. We are, luckily, at a place where foreclosures and short sales are no longer happening in such enormous numbers as they were during the recession.
2. Housing stock may decrease
With comfort in the housing market’s stability comes a flood of buyers (which many U.S. cities have already been seeing), which leads to a decline in available housing. This will likely be toughest on entry-level buyers, since prices will continue increasing.
3. Lower-cost new homes
As a result of the shrinking stock of starter home-type real estate, home builders will place a stronger emphasis on building entry-level homes.
4. Mortgage diversity
Marketwatch states that a rise in mortgage rates will create a need for mortgages that do not require high down payments or long-duration mortgage insurance premiums. There is even talk of crowdfunding mortgage models for a home or loan to be shared by multiple families.
5. Millennials move to the suburbs
As more and more Millennials start families, many of these families move to the suburbs. What does this mean for you? If you live in the suburbs and are considering selling your home, now is a great time to do so.
Have you noticed any 2016 real estate trends so far this year? Let us know in the comments section below.