MarketWatch published an article on the four real estate trends that will be seen in 2016.
The article, written by finance reporter Daniel Goldstein, talks about the anticipated rise in interest rates and how that will effect all real estate transactions. The four trends to happen in 2016 are:
Home prices may stagnate
More Millenials will be looking to purchase: “Most borrowers of this age group are waiting for a work promotion or to build up enough savings to buy,” said McLaughlin. “We don’t expect a big rush to jump in, but it’s going to be an incremental improvement.” – Ralph McLaughlin, an economist with Trulia.com
There are fewer homes available for buyers: home improvement projects in 2016 will reach a new high. There will be more remodeling of high-end rental properties as interest rates rise making renting more attractive for some.
New Mortgage loan products will be needed: the need for more loan products that don’t require large down payments or mortgage insurance premiums. Freddie Mac CEO Donald Layton told mortgage bankers that more low down payment products were needed to fill the gaps that left some borrowers, especially self-employed, unable to get home loans.
Article published on December 9, 2015. David Goldstein is a personal finance and rel estate reporter for MarketWatch