Planning to sell or buy a house this 2016? If you are, you need to look into some real estate trends which may greatly affect your decision. Home prices and interests are always going up every year gradually. So, what will be the trend for sellers, renters and homebuyers in 2016?
Apparently, prices of homes will continue to rise. It is surveyed by Zillow that the values of homes will moderately rise to an average of 3.5 percent. But some economists think that areas like San Francisco, Denver and Dallas may approach the bubble territory due to price appreciation, Yahoo! Finance wrote.
Aside from that, interest is also bound to increase which may dampen the housing market. But according to experts, the more important factors to consider is job security and wage growth.
Mortgage rates will also rise due to a decision by the Federal Reserve to raise interest rates this past December. With higher rates, this will mean higher monthly payments but it could also motivate homeowners to sell which could be an answer to the shortage of houses. Rents are also bound to rise which may make buying a home more appealing and which will make it difficult for struggling renters who pay every month, Houston Agent Magazine reported.
In terms with the type of homes, many buyers are looking for eco-friendly and energy efficient homes for a healthier indoor environment and durability. According to a study by Dodge Data & Analytics for the National Association of Home Builders, more than half of the builders as well 39 percent of remodelers are working on green projects and this is expected to rise.
Meanwhile, affordable housing is also a trend which is just hindered by labor shortages and high land costs. More affordable construction could be an option for some homebuyers that are based on contracts that were signed in the fall. There will also be increased availability in credit access.
