Predictions for the New Year’s real estate market include forecasts of a healthy market with steady growth similar to 2015. While some market areas have still not recovered their home value prior to the recession, the 2016 market is expected to raise home values in most areas and hail the return of a more normal housing market.
One of the areas often found lagging behind the recession and housing bubble recovery continues to be rural areas that have smaller buyer pools. As 2016 is expected to see retirees, millennials, and younger generation x’ers (ages 35-44) comprising the majority of the buyers’ pool, home sales will largely reflect the needs of these age groups respectively.
With these buyer groups forecasted to lead home purchases in 2016, the primary markets expected to lead home sales are residential, inner city suburban homes and new construction, with new construction sales expected to be at its highest level since 2006.
As the cost of rent is also expected to rise through 2016, more first-time buyers may be forced to enter the market, though will be competing for properties listed at $299,999 or lower.