Sure, 2016 has already started, but much of the year still lies ahead for people to enter the real estate market! Whether you’re involved in renting out multifamily units, flipping homes, or buying your first piece of real estate, you’ll want to understand the space in such a way that will allow for success. Real estate is known for a being a space with little room for error, so you’ll want to be prepared.
Here are the top real estate trends to look for in 2016:
Millennials were a dominant force in the 2015 market, representing more than 1/3rd of total sales. As millennials’ personal financial conditions improve, this pattern of increasing sales is likely to increase. Since Gen Xers are in the midst of a financial recovery and older boomers are entering retirement, there’ll likely be a large number of total sales in those generations as well.
A number of agencies are adding mortgage brokers to their in-house teams, and for good reason- interest rates are likely to remain low due to geopolitical unrest, keeping inflation in check and thus increasing the number of buyers. Agencies will be looking to mortgage brokers to ensure that deals are closed faster with clients getting the best rates possible.
2016 is likely to continue to be a buyer’s market, with agents getting creative on putting the best deals forward. Single-family home sales have been increasing since 2012, and given that there’s a decreasing trend in the number of distressed sales, we’re likely to see a large number of high-quality deals available.
Throughout the U.S., cities are undergoing what could be referred to as a cultural renaissance. The 18-hour city is becoming a widespread phenomenon, and urban areas are beginning to compete on serious levels. This is likely to lead to an exodus of real estate agents migrating to cities to capitalize on the high demand (and somewhat high supply, depending on the city and area) in the urban markets.
Many agents are quickly becoming credit counselors for their clients as well, as most consumers only have a slim idea of how credit works. This trend will make it all the more important for agents to be knowledgeable on the role of credit in buying and selling real estate (if they aren’t already).