Posted on January 12, 2016 by Miller and Smith Blog Team
Now that 2015 has come to a close, what should prospective homebuyers expect in 2016? Read on to discover a few emerging trends we expect to appear over the course of the next year:
Consumer Confidence On The Rise: According to a recent article by RealtorMag.com, homeowners are more upbeat about home values, with an increased HPPI (Home Price Perception Index) in November 2015 over that of the previous year. This increased confidence in home values nearing the close of 2015 will likely translate into a continued increase in consumer confidence in 2016. According to RealtorMag.com, although homeowners are ” traditionally more bullish on prices, the gap between home owner and appraisal estimates is narrowing.”
New Home Sales Expected To Drive Home Sales: According to Realtor.com, the new home sector is expected to see the largest amount of growth out of any sector of the real estate market in 2016, with an expected 16% year over year increase in new home sales. In fact, according to the NAR, total sales for both new and existing homes in 2016 are expected to reach 6 million for the first time since 2006!
Cost of Renting Will Soar: According to Zillow’s 2016 Forecast, median rent prices will rise to unprecedented levels over the course of the next year after Americans Paid $535 Billion in Rent in 2015. The high amount of rent being paid in 2015 was due to a surge in the number of renter households in the US, along with rising rent prices in general.
Suburban Living Expected To Expand: According to housing experts at Zillow, a continuous lack of affordable homes within many large cities will push young and first-time homebuyers alike into the suburbs. Zillow’s Chief Economist Svenja Gudell commented in a recent blog post: “When they get there, they’ll be looking for amenity-rich suburbs — mini-cities, with walkable cores and an urban feel.”
Millennials Will Make Their Mark: Millennials are expected to enter the real estate market in a big way in 2016. They will make up 30% of the prospective homebuyer market, according to RealtorMag.com. According to Realtor.com‘s 2016 Housing Forecast, Millennials will be “driven by increasing income, millennials will seek out homes that meet the needs of their growing families – putting the most weight on the safety of the neighborhood and the quality of the home. Commute time and a preference for older homes have these buyers looking in city-centers and closer-in suburbs.”
We think you’ll agree that 2016 is going to be a great year to invest in a brand new home. Be sure to check out our stunning selection of new homes available in Maryland, Virginia and Delaware, along with our current list of immediate delivery homes for an even speedier move-in date!
Sources: zillow.com, realtormag.com, prnewswire.com