In a previous report, it was stated that more millenials are expected to buy homes as growth is expected in the economy as well as improving job market conditions. According to Time Money interview with Gudell, Millenials will be the biggest buyers in the market as more of them are either getting stable jobs or settling down and getting married.
Other news sources agree that more millenials buying real estate will be one of the trends in the real estate market for 2016. According to Puget Sound Business Journal, Matthew Gardner of Seattle-based Windermere Real Estate believes that more millenials will be investing in real estate because this year they are most likely to starting to settle down and with apartment rents soaring they will become more inclined to owning a home.
Gardner also added, "Because it is an election year, I do not expect to see any significant governmental moves that would have major impacts on the U.S. economy or housing markets."
On the other hand, Seattle appraiser Brian O'Connor said that young people are not buying homes yet, according to the publication.
Gardner firmly believes that more millenials will be urge to homeownership by the steep increases in rental expense as their confidence in the housing market also grows. He also notes that baby boomers will tend to downsize, so as they sell their homes, there will be an increase in the supply of homes for sale.
According to Puget Sound Business Journal, Gardner has also predicted that one even if the mortgage rate continue to rise through 2016, the average 30-year fixed rate would still be below five percent by the end of the year. He also said that the price of existing homes are expected to increase by 4.7 percent, while credit requirements will become more flexible.
