It’s almost springtime, which means the real estate market is warming up, as well. For real estate professionals, this means an increase in listings, open houses and closings. Here are a few trends projected for this year:
- Rents will rise higher than home prices. With interest rates rising slowly, renting will continue to turn Millennials toward home purchases. Realtor Magazine says, “It is more affordable to buy in more than three-quarters of the U.S.” right now. But, they warn that you shouldn’t expect tons of new buyers to come knocking at your door. While buying may be the better option in the long run, many young professionals are still battling low credit scores and limited savings.
- Generational shuffle. Millennials did become a dominant force last year, representing nearly two million sales, and two-thirds of the total, according to realtor.com. They project this pattern will continue in 2016. Gen Xers and older boomers who start thinking about or enter retirement could open up homes in the suburbs that would be perfect for new homeowners.
- Bigger homes on smaller lots. Because land is fairly expensive, Time Magazine predicts that builders will try to maximize profits by building larger homes. This way, they can build a great home, and save on the cost of land. If your clients are more concerned about the size of their home, and not their potential yard space, this could be a great selling point.
The market can be unpredictable, and these are just a few possible trends that could be making their way to your market this year. Be sure to protect every home you sell with an HSA Home Warranty!