Nothing is permanent in this world but change, and that change also takes effect in the real estate business. A lot of predictions about what the housing market would be like this 2016 have been circulating since last year.
Here's a roundup of what's in store for the real estate industry this year:
An increase in wages and compensations
Business Insider reports that the average earning per hour is higher by 2.5 percent after the 2.3 percent increase in the third quarter which shows an increase of 0.5 percent from the 2 percent in 2014. Compenstaion per hour, on one hand, increased to 3.5 percent in Q3 compared to the same period of the previous year. However, the labor costs as per Employment Cost Index still shows that the wage growth is still uncertain, giving vague direction to real estate buyers and renters as well.
A solid foundation of house prices
There is a solid foundation of the pricing of houses as the homeowners themselves are in full support on this using their own incomes. Washington Post reveals that the existing market condition favors those homeowners who are looking for buyers. There is a less number of existing and new properties for sale so owners have greater chances of selling their house, provided that they have good real estate agents to assist them.
A housing market turning point for increase or decrease
Via Business Insider, Stephen Phillips, Berkshire Hathaway Home Services president relates that he has seen the gap between the accelerating home prices and the decreasing wages this 2016 and comments that the housing market could probably be at its "turning point." According to Business Insider, the job market this year is at its belt tightening state. Market analysts have predicted that once the job market will have improved this year, the employment incomes will also increase.
