Real estate market news: the trend forecast for 2016

29 Mar 2016
A real estate agent’s job is not quite so simple as acquiring a diverse portfolio of properties, finding interested parties with enough money to purchase, and making a sale.

If only, right? The truth is that the real estate industry is one that always needs to be watched, monitored, and gauged to determine what the future will hold. While 2015 was the best year in the industry since 2007, it looks as though the good news will continue into 2016. It goes without saying, that one of your key jobs is to ensure that you are up to date with the predictions and real estate market news coming into the new year.  So we have compiled a short list of the top real estate trends to keep an eye on in 2016, based on’s findings in this article:


There will be a sense of ‘normalcy’ once more


One of the biggest things in real estate market news, according to their predictions, believes that the the industry is going to find a sense of calm and normalcy once more, after 15 years of “abnormal trends”. And while there will be a steady stream of property sales, it will happen at a more gradual rate than in 2015. The article predicts the following “Distress sales will no longer be playing an outsized role, new construction is returning to more traditional levels, and prices rise at more normal rates consistent with a more balanced market.”


There will be an increase in multi-generational buyers, not just Millennials


While many have predicted to be the key players in the real estate game, 2016 will actually see a mixed group of buyers. The Millennials were a force to be reckoned with in 2015, making up the majority of buyers, and according to the article, “This pattern will continue in 2016 as their large numbers combined with improving personal financial conditions will enable enough buyers between ages 25 and 34 to move the market—again.”


However they are not the only players in the field. Hot in real estate market news is  “financially recovering Gen Xers and older boomers thinking about or entering retirement” are also going to be playing leading roles in the market this year, and in fact their roles will be two-fold — both contributing to the buying and selling markets. Judging by this assumption, 2016 may just be the best year to sell, as the article outlines. 


Real estate market news the trend forecast for 2016


Builders are having to adjust their strategies


The article articulates it perfectly: “Facing higher land costs, limited labor, and worries about depth of demand in the entry-level market, builders have shifted to producing more higher-priced housing units for a reliable pool of customers.” The problem with that, is that it has made new-built houses, considerably more expensive than those already built. While builders gleaned the profits they desired, this meant that their room for growth was limited. This is set to change into the new year.


Mortgage rates still volatile in 2016


2015 saw mortgage rates going both up and down, and the same is expected in 2016, according to what is said in the real estate market news. While the hike is meant to be fairly steady, the downside is that “higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” According to the article, the high-cost markets are those that are bound to be affected by higher mortgage rates the most. 


Real estate market news the trend forecast for 2016


Rental rates are on the rise


Something that is making real estate agents really take note in the real estate market news, is that rental rates seem to be on the rise again in 2016. This is something that could create a lot of trouble into the future, in that technically, it would be more beneficial for people to buy houses instead of rent them — “...rents are accelerating at a more rapid pace than home prices, which are moderating. We’ve been seeing asking rents on vacant units increase at a double-digit pace in the second half of this year.” And while that could be a good thing in some areas, the reality is many people renting are not in a position financially to buy right now, or to even be considered for a mortgage.


People are looking overseas to invest


The perfect home that can double up as both an income generator and a holiday home is still one of the best investments out there, and with strong currencies, buying abroad is still making headlines in real estate market news, good news at that. With the strengthening of the pound over the euro, people of all generations are starting to look abroad for their property investments into 2016, with Spain and Ireland piqueing the most interest according to this Telegraph article. It goes on to say that the property values in those countries are also on the rise, making them prime investment real estate into 2016.


If adding a multi-faceted property abroad to your property portfolio sounds appealing to you, then look no further than the Costa Blanca in Spain. In an area that sees more sunlight than any other type of weather, along a gorgeous stretch of coast, it shouldn’t be difficult to realise why property here is quite literally ‘hot property’. Contact us for more information on our versatile property portfolio sporting properties for sale Costa Blanca, where you are bound to find the perfect property for your real estate portfolio needs.

Recent Post
telephone Do you need some help or advice?