Real Estate economists shared their insights, figuring out what lies ahead in the real estate industry and it seems that this year’s real estate industry will be a promising year for economic and industry advancement. Homebuyers should familiarize themselves with the trends that will have an impact and will influence the real estate market this year.
Sales of existing homes are expected to grow moderately this year. According to Chief economist of the National Association of Realtors, Lawrence Yun, there will be a continued growth of housing demand as sales activity will once again be driven by the increasing amount of sellers, who will be finally realizing their equity gains and using it towards the down payment for their next home.
The 2016 housing market will be influenced by three distinct generation groups, which are the Millennial, Generation X and Boomers. The Millennials (ages 18 to 34) were a dominant force in 2015, representing almost 2 million sales, which is more than one-third of the total. The Gen X population (ages 35 to 50) who are mostly with growing families and incomes recovering from the recession, are mostly entering the market for the first time. Boomers (aged 51 and older) are currently making up about 15% of the housing market. Since most of these people are already homeowners, they will more likely play a double role, boosting the market as both sellers and buyers.
According to some reports, distressed sales will no longer be playing an outsized role. The new construction market is returning to a more traditional level and expected to make consistent gains this year. Builders will focus more on affordable price points and the residential construction sector will continue its gradual recovery. Attractive mortgage rates are also expected to be a huge factor in new construction gains this year.
Have these trends prompted new real estate needs for you? If you are ready to take the next steps towards purchasing your new home in Denver area, Contact the professionals at theBandy Team for a no-obligation consultation. Whether buying or selling a Denver home, if you’re interested in Denver Real Estate, we can show you some beautiful homes for sale in Denver.
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Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
720-466-3790
