The Five Real Estate Trends Shaping Real Estate in 2016

We're nearing the end of the year and everyone is sharing their predictions and hopes for real estate in 2016. According to Realtor.com, here are the top five trends that will be shaping real estate next year. The economy, rental market, and housing market are all changing in the Seattle area and its Eastside. These trends are definitely something you want to pay attention to as we jump into 2016.

Five Real Estate Trends in Real Estate in 2016

1. We'll Return to Normal

Something that we in the Seattle area are eagerly anticipating! The year ahead will see healthy growth in home sales and prices, but at a slower pace than in 2015 according to Realtor.com. "Distress sales will no longer be playing an outsized role, new construction is returning to more traditional levels, and prices rise at more normal rates consistent with a more balanced market."

2. The Best Year to Sell

We all knew that millennials would make a huge impact in 2015, and they did. Millennials emerged as a dominant force in 2015 and represented almost 2 million sales. That's more than one-third of the total! "This pattern will continue in 2016 as their large numbers combined with improving financial conditions will enable" them to jump into the market again.Financially recovering Gen Xers and older boomers who are thinking about retirement are also going to affect the market. According to the article, since "most of these people are already homeowners, they'll play a double role, boosting the market as both sellers and buyers." If you or your loved ones are ready to retire and downsize, let us help! We're experts in advocating for seniors and retirees.

3. Builders Will Focus on Affordable Price Points

Single-family construction continues to struggle in its recovery efforts. "Facing higher land costs, limited labor, and worries about depth of demand in the entry-level market, builders have shifted to producing more higher-priced housing units" which is causing new-home prices to rise much faster than existing-home prices. We're already seeing a decline in new-home prices for new contracts signed in the later half of the year, so this should change and begin to balance in 2016.

4. Higher Mortgage Rates will Affect High-Cost Markets the Most

We new rates would go up in 2015, and they did. But they also went back down. Realtor.com expects "similar volatility in 2016, but the move by the Federal Reserve to guide interest rates higher should result in a more reliable upward trend in mortgage rates."

5. Already Unaffordable Rents Will Increase More Than Home Prices

Rental housing costs are becoming outrageous in most of the country, especially in Seattle and surrounding areas. Because of this, "it's more affordable to buy in more than three-quarters of the U.S." This isn't always an option for all renting households.This trend is a little touchier does not bode well for the overall health of the housing market. If we see more construction of affordable rental housing, it could become a better pathway for renters to become homeowners in 2016.For more information, read the original list on Realtor.com.