Whether you are looking to buy or sell real estate in 2016, there are a number of trends that you may want to be aware of in order to get the best deal. While some people may be looking to purchase their first home, others may be retiring and looking to downsize. No matter your situation, take a look at some of the following trends and see which ones may be affecting you in 2016.
High Interest Rates
While interest rates for home buyers have been very low in recent years, thosedays may be nearing an end. During the second half of 2016, most financialexperts expect interest rates to increase, which will lead to buyers payingmore each month on their mortgage.
As interest rates have been low for some time, the result has been more and more people buying homes. As a result, the inventory of homes available for sale has gone down substantially. Therefore, buyers looking for a new home may find themselves paying higher prices if they want the home of their dreams. For those buyers who are determined to buy a home in 2016 no matter what, their best options may be to purchase newly-constructed homes that developers are eager to sell as soon as possible.
While in the past most home buyers have been older, the trend in 2016 is foryounger buyers to become first-time homeowners. Whether it’s a youngprofessional or a couple ready to start a family, most buyers will fall intothe 20-35 age range. Along with this, older buyers will decrease, insteadchoosing to move to apartments or retirement communities.
For those in metropolitan areas, rental rates on homes are expected to rise.Because home prices have increased over the past several years, more peoplehave chosen to rent instead of buy a home. In areas considered to have rentalproperties in high demand, rates may be as much as 30 percent higher.
While in years past people wanted to live in 24-hour cities such as New York or Las Vegas, more people today prefer what are known as mid-level cities such as Austin or Denver. While still considered cities full of life and plenty of entertainment, they also offer many amenities that appeal to families, making them extremely popular for the influx of younger home buyers entering the market.
Jay Alan Sekulow is the Chief Counsel for the American Center for Law & Justice (ACLJ).