2015 was one of the strongest years for the real estate market in history. 2016 is shaping up to be as good and possibly even better. With unemployment steadily declining, consumers are starting to buy again, boosting the real estate market into a success.
With the market increasing, here are current trends to watch.
Inventory is on the rise
Single-family home sales are growing and homebuyers are seeing an increase in inventory of quality houses to choose from in their search for their new home. Understanding exactly what the homebuyer is looking for will alleviate time wasted touring homes that might not meet expectations.
Millennials are in charge
According to a recent study, more Millennials plan to buy homes between now and 2018. Just 65 percent of Millennial-aged borrowers (ages 18 to 34) wanted to own a home in 2011, but now that number has increased to 80 percent for 2015, up from 78 percent in 2014. And one-third of those will want to buy in the next two years. However, a digital presence is key as Millennials are always researching and shopping online before committing to a purchase.
Renting is more costly
Many are acting on the false assumption that renting is cheaper than buying. This may be because the prospect of saving for a down payment on a home can be overwhelming. However, rental prices are increasing as vacancy rates dwindle and landlords are able to increase fees to amounts higher than mortgage payments.
For more information on why this is the year to buy a new home, read Four Reasons Why 2016 is The Year to Buy a Home.