The year 2015 has been a great year for the real estate market and according to a forecast from Realtor, real estate brokers can expect an even greater year come 2016. This is because the economy has been good by far which means the employment rate will also continue to increase. If people have jobs, they will have the money to purchase their first house or even move at a newer or bigger one. So what do real estate brokers can expect in the coming year? Here are the trends that are believed to have the greatest impact in the real estate world in 2016.
Generous growth in sales and prices of housing
Real estate brokers can expect a good increase in home sales in 2016 but at a gradual pace than 2015. The slowdown does not indicate a problem but a return to the normal state instead.
Millennial will continue to be a dominant force
They represent close to 2 million sales in 2015 that is, over one-third of the overall sales. This pattern is expected to continue in 2016.
Builders will look for more affordable points in price
Builders are now shifting to produce more affordable points in housing units to retain a reliable pool of buyers. Builders have earned a profit in this kind of strategy but their potential of growth was limited. In the coming year, builders will offer a more affordable product to continue the increase in new-home sales.
Rents that are already affordable will go up more than the price in homes
The cost of the housing rental in most countries is crushing. Report shows that 85 percent or more have rents in the U.S. markets that exceed 30 percent of the renting household's income. Real estate brokers can expect an asking rent increase on vacant units from January to December in 2016.
