Top 3 Emerging Real Estate Trends for 2016

How would the real estate market look this year? With the Federal Reserve’s anticipated increase in interest rates, experts predict that a lot of changes are going to take place, and that these changes would have a great impact on all types of real estate transactions. Here are some of the changes that may transpire in the real estate industry in 2016.

Real Estate Trends for 2016

Interest rates and housing prices will rise

According to Realtor.com, interest rates are expected to increase to 4.65% on the average while housing prices are predicted to rise by 3% this year. When this happens, people will find more difficulties affording a home. In addition, housing demand and growth will be limited since the unaffordable markets (the number of houses that are unaffordable to the average American wage earner) will increase from 3% to 25%. However, buying a house would be a much better option in markets where the median rent hits record high (e.g. in places such as San Francisco, New York, and Boston).

More millennials will be buying their first homes

According to Trulia.com, more millennials have expressed their interest of buying their first homes within the next two years. While 65% of millennials wanted to own a home in 2011, that number has jumped to 80% by the end of 2015. However, with the impending increase in interest rates, some of these first time home buyers may choose to delay their purchase for another year or so.

More people will relocate to second-tier cities

Second-tier or 18-hour cities such as Austin, Nashville, San Antonio, Atlanta and Raleigh-Durham will finally take center stage. These cities will be gaining immense popularity due to the lower costs of living and the presence of amenities that appeal to different generations.    

No one sells a home like a Mom so contact me at 678-656-6627 if you have any questions about local market conditions, financing or anything that can help you with in your search for real estate. You can also visit my site at http://www.pamsantoro.bhhsgeorgia.com/ for more tips on selling or buying a home. 

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