Experts Share Real Estate Trends To Watch Out For In 2016
The year is about to end but what do investors have to say about next year's real estate market? Nela Richardson, chief economist for Redfin, a national real estate brokerage firm, said that a rate increase won't be likely.
"Buyers now don't seem to be all that spurred or driven by a rate increase," Richardson said. "That lack of urgency will translate into next year's housing market. There's interest, but there's not a lot of inventory to buy," an article from US News reported.
After that revelation, these top 5 real estate trends should be expected:
1. Slowing coastal markets -- Ralph McLaughlin, housing economist at Trulla said that areas where the priciest homes are located (West Coast and Northeast areas) will see signs of slowing compared to the previous year. It is very noticeable in real estate markets in San Francisco, San Jose, Southern California and in the Northeast.
2. Booming market areas in the South -- McLaughlin further speculated that areas like the metros of Winston-Sale and North Carolina will spark as buyers migrate to the south. Baby boomers and young investors will choose the south to escape the cold.
3. Increase in suburban properties -- Svenja Gudell, chief economist from Zillow hinted that amenity-rich suburbs are more preferred than densely populated cities. Future homeowners are looking for better amenities such as easy access to commercial establishments, supermarkets, dry cleaners and other conveniences of suburban living.
4. Increase in older first-time buyers -- people with growing families will now consider buying their own homes and those that are not too affected by the labor downturn may now think of buying next year. Millennials or those 34 and younger make up 32 perfect of the overall generational home buying trends from the National Association of Realtors.
5. Increase in trade ups from millennials -- those that already own homes, condos or apartments may be thinking of trading up for a more spacious home to start their own families. But inventories may be reduced in most markets since other types of homeowners are looking for trade ups as well.