According to the experts, 2015 was a great year in the housing market. This year, with economic growth improving and employment continuing to increase, more people will be able to buy their first home, or perhaps upgrade to a new one.
Because 2016 is slated to be a dynamic year in the housing market, we called up our friends at the Finn Team, with Coldwell Banker West Shell, for some advice on trends to watch out for in the new year.
Listing Specialist Rick Finn, Marketing Coordinator Holly Finn, and Residential Buyer Specialist J. Webb of the Finn Team with Coldwell Banker West Shell were kind enough to give us their "top 5 real estate trends for 2016." Here we go!
1. Home prices will return to a more normal pace
"After the devastating housing bust, we are finally seeing things return to more normal conditions. Prices will rise at normal rates consistent with a more balanced market." - Rick Finn
"In 2015, some Cincinnati neighborhoods saw huge price increases due to the lack of inventory and pent-up buyer demand. The trend may fall off slightly, as more inventory becomes available this year." - J. Webb
2. 2016 is shaping up to be the best year (in recent memory) to sell
"We are seeing an increase in millennials (buyers age 25-34) making their first home purchase. 'Gen Xers' are financially recovering and in their prime earning years, which means they will be looking to move up." - Holly Finn
"We are also seeing those entering retirement looking to downsize now because they are noticing that their current homes are in high demand. Supply is very tight, which means inventory is moving very fast, making this year one of the best to sell." - Rick Finn
3. Strong growth in new home sales and properties that are completely renovated
"Single-family new home construction is still lagging behind, partly due to higher land costs and limited labor. However, we are starting to see a strong increase in new home construction. Still, availability will be highly dependent upon location." - J. Webb
"Another trend we see every day is that buyers are busy and do not want the burden of having to do remodeling. This makes it very competitive for investors who want scoop up deals to flip. If you have a completely renovated home, buyers are willing to pay a premium for a home that looks fresh, modern, and move-in ready." - Holly Finn
4. Mortgage rates will go up enough to have a slight effect
"We are expecting to see an upward trend in mortgage rates, but still at a level that is manageable." - Rick Finn
"Markets with the highest price points may see an effect of fewer sales because of the increased rates. The effect will still be minimal and may even spur existing homeowners to sell and buy before rates go higher." - J. Webb
5. Rent prices will become even more unaffordable
"Rent prices are accelerating at a more rapid pace than home prices." - Rick Finn
"The cost of rental housing has become absolutely crazy in the most desirable Cincinnati neighborhoods. For example, a 900 sq.-ft. apartment at The Banks is ranging from $1,500-1,700/month." - Holly Finn
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If you would like specific real estate information for your neighborhood or home, reach out to the Finn Team with Coldwell Banker West Shell.
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Cheers to a great year for real estate!