Real Estate Trends That are Shaping 2016
Posted July 19th, 2016 by Clarissa Gregg

2015 saw the best housing market we have seen in the United States since 2007, and 2016 has been shaping up as an even better year! Economic growth is progressing, employment is increasing, and people have more income to allow them to buy a first home or upgrade if needed. Here are some of the ways that 2016 is proving to be a great time to buy or sell a home:
1. Unaffordable rents will increase in price more than home values.
Rental housing offers the convenience of not having to worry about the challenges that can come with owning, however more than 85% of US markets have rents that exceed 30% of the income of renting households. Rents are increasing rapidly, and it doesn’t look like this will slow down anytime soon. Home prices, on the other hand, are moderating, which makes home ownership more affordable than renting a home in nearly three quarters of the United States.

2. The housing market is returning to normal.
The last 15 years have seen many trends that were outside of the norm, and we are beginning to see a return to normalcy. The housing market is not growing as much as in 2015, but this is not necessarily a bad thing because it is staying the course. Prices are rising at a more regular rate that is consistent with the balanced market we are seeing in 2016.

3. 2016 is one of the best years in history to sell your home.
Generational shuffle is a big piece of the puzzle when it comes to the real estate market in 2016. Millennials between ages 25 and 34 will have improving financial conditions, allowing them to continue to move the market along. Gen Xers and Baby Boomers will also be moving the market along. Since many of them are already homeowners, they will be contributing as sellers AND buyers. Gen Xers have great earning potential at this stage in their life, so they are able to upgrade to a larger home. Baby Boomers are approaching retirement and may be looking to downsize, as well as lower their living costs. Supply is fairly tight at the moment, so homes are selling quickly and many markets.
With the market in such good shape in 2016, it is a great time for you to get your home on the market! At Moving Station, we can help you navigate your home sale quickly and for the best price, especially when the market is in such a fantastic place.

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