Real Estate Watch – Deanne Motsenbocker – Portfolio Real Estate
Five Trends for the Real Estate Market in 2016
2015 was a very good year for real estate in San Diego and we saw a substantial rise in pendings, closed sales, and average sales price. In fact it may have been the best market for housing since 2007. As we bid adieu to 2015, let’s see what is in store for real estate in 2016…
The National Association of Realtors cites five trends that will dominate the real estate market in 2016. First and foremost, they are saying that continued employment growth will make things even brighter in 2016.
1. Normal is coming – Expect healthy growth in home sales and prices, but at a slower pace than 2015.
2. Generational buying trends – Millennials are finally making the move and entering the housing market in record numbers. Along with Gen Xers moving up as families grow and Boomers downsizing as they enter retirement, this will mean double deals as they both buy and sell this year.
3. New home construction focuses on more affordability. We will see a focus on construction for those new entry-level buyers but a healthy economy will likely mean the high end, like Rancho Santa Fe, will see growth also.
4. Higher Mortgage Rates – Well, I predicted that in my last article didn’t I? Didn’t really need a crystal ball to figure out that it had to happen. They are not expected to climb quickly but will sustain gradual increases as the market remains healthy.
5. Rents are expected to go even higher. Good news for all those of you in 92067 that own investment property. Rents are accelerating at a more rapid pace than home prices, which are moderating.
Wishing you all a happy, healthy, and prosperous New Year! If you are thinking of buying or selling real estate in 2016 please contact me. Remember – to get the MO$T, call MOTS!