We've seen lots of actions in the real estate industry in the past years. You see, things are changing. If more people prefer renting apartments in the past, now, rent rates have skyrocketed and people have no choice but to look for an affordable space to own (though some people still prefer renting).

1. We’llreturntonormal
(Anyoneremembernormal?)
Theyearaheadwillseehealthygrowthinhome
salesandprices,butataslowerpacethanin
2015.Thisslowdownisnotanindicationofa
problem—it’sjustareturntonormalcy.
Generationalshufflewillmake
2016thebestyeartosellin
thenearfuture
Millennialsemergedasadominantforcein
2015,representingalmost2millionsales,which
ismorethanone-thirdofthetotal.Thispattern
willcontinuein2016astheirlargenumbers
combinedwithimprovingpersonalfinancial
conditionswillenableenoughbuyersbetween
ages25and34tomovethemarket—again.
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Builderswillfocusonmore
affordablepricepoints
Oneaspectofhousingthathasnotrecovered
yethasbeensingle-familyconstruction.Facing
higherlandcosts,limitedlabor,andworries
aboutdepthofdemandintheentry-level
market,buildershaveshiftedtoproducingmore
higher-pricedhousingunitsforareliablepoolof
customers.
Highermortgagerateswill
affecthigh-costmarketsthe
most
Wetoldyoumortgagerateswouldgoupin
2015,andtheydid—buttheyalsowentback
down.Weexpectsimilarvolatilityin2016,but
themovebytheFederalReservetoguideinter-
estrateshighershouldresultinamorereliable
upwardtrendinmortgagerates.
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Homepricesmaystagnate
AstheFederalReserveworrieslessaboutstimulusandmore
aboutkeepinginflationincheckwithaneconomythat’sfinally
producingjobs,interestrateswillgoup,increasingthecostof
creditforthoseseekingtopurchaseahome.
Theremaybefewerhouses
availableforbuyers
Thesteadyrecoveryinreal-estatepricesin
manymarketsoverthelastfouryears(the
mediansalespriceofall-sizedU.S.homeshas
risenfrom$153,000inJanuary2012to
$183,000inNovemberof2015,againof
nearly20%)hasbeenatwo-edgedswordfor
peoplelookingtobuyahomeormoveup
toalargerorbetterone.toalargerorbetterone.
Moremillennialswilllookto
buyahome
Thegoodnewsisthatmoremillennialswantto
buyhomesbetweennowand2018,according
toTrulia.com.Just65% ofmillennial-aged
borrowers(ages18to34)wantedtoowna
homein2011,accordingtotherealestate
group,butnowthatnumberhasincreasedto
80% for2015,upfrom78% in2014.
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Morenewmortgageloanproducts
willbeneeded
Asmortgageinterestratesrise,theneedformoreloanproducts
thatdon’trequirelargedownpaymentsoryearsofmortgage
insurancepremiumsisgoingtorisein2016aswell,saysAnthony
Hsieh,chiefexecutiveofloanDepot.com,thesecond-largest
nonbanklenderintheU.S.
PlayingforAdvantage,
GuardingtheFlank
“Bigassets,bigcities,bigcapital,andbig
competition.TheU.S.ismoreinfavorthantherestof
theworldrightnow.”
Thegameofchessisnotagameofchance,butrequiresmasteryofThegameofchessisnotagameofchance,butrequiresmasteryof
acomplexsetofskillsthatarebothartandscience.Aplayerneeds
tobealert,equallyawareofthestrengthsandweaknessesofhis
ownpositionandthatofhisopponent.Aplanisneeded,most
assuredly.Thenumberofpossiblegamesthatcandevelop,
however,exceedsthenumberofatomsintheuniverse.Hence,
flexibilitywithintheplaniscritical.Eachmovehasashort-term
impactandisalsoastepinpositioningforavictoriousendgame.impactandisalsoastepinpositioningforavictoriousendgame.
Infographicby
www.WashingtonStateKitchenBath.com
Sources:
https://pixabay.com
http://www.realtor.com/news/trends/five-key-trends-for-2016/?is_wp_site=1
http://www.marketwatch.com/story/4-real-estate-trends-well-see-in-2016-2015-12-09
http://uli.org/research/centers-initiatives/center-for-capital-markets/emerging-trends-in-real-estate/americas/