The housing market in 2016 [Video]
Posted on Monday, January 4, 2016 at 11:43:55 AM
Few would disagree that 2015 was a very good year for the U.S. housing market, as home prices increased, foreclosures fell, and just about every indicator of growth was checked off. These factors are part of what makes the notion that 2016 could be even better so exciting. Reuters, in an interview Svenja Gudell, chief economist of Zillow.com, highlighted several areas which could improve on last year's strong performance.
With consumers' focus on interest rates - which are expected to increase four times by 25 basis points - and the effect the rate hike will have on residential financing, Gudell provided reassurances. So far, markets have been almost completely unfazed by the Federal Reserve's decision. While coastal cities like San Francisco, Miami and New York may be affected as rates continue to climb, the vast majority of markets will stay stable.
A potential trend for 2016 has first-time homebuyers turning to the suburbs, particularly those that offer a city-like feel with restaurants and shops within walking distance. Condo sales will also increase. Major markets like Denver, Dallas and Salt Lake City will see their real estate value rise unabated.
According to the International Business Times, millennials are also expected to play a much bigger part in the market this year. Analysts predict that with economic prospects improving every month, Americans under the age of 35 will look to homeownership as an inviting means for building wealth.