What’s in Store for the Housing Market in 2016?

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As the New Year rolls around, you may be wondering about the changes that might occur to the housing market in 2016. Whether you are planning to buy or sell a home, or you are interested in the current value of your property, it is important to stay up-to-date on the changing trends in the real estate industry.

Improvements in the Housing Market2016 Real Estate Market Trends

After the real estate market dropped several years ago, home prices have steadily been climbing with time. According to a report published by Realtor.com, it is estimated that in 2016 real estate prices will reach their highest point since 2006. This report is great news for home owners who are wanting to maximize the equity in their property.

It is anticipated that gains in both sales of existing homes and new home construction will push overall home sales to the highest level they’ve been in a while. Based on these changes, it is probably safe to say that the housing market has recovered and we are finally entering into a healthy and normal real estate market. Based on the report, it is estimated that there will be a total of 6 million homes sold in 2016.

Home Buyer Segments

The prediction is that there are three specific demographics that will fuel the increase in home sales: millennials (ages 25 – 34), generation Xers (35 – 44), and retirees between the ages of 65 and 74 years old. It is estimated that millennials will be the largest part of the market, making up 30% of the demographic.

The millennials are driven by their growing families and increasing incomes, allowing them to buy homes for the first time. Generation Xers are ready to upgrade their homes, and retirees are interested in downgrading to choose a home for retirement.

If you are planning to buy or sell a home, then 2016 is a great time to make your move! For more information about current real estate trends, I invite you to contact me anytime. I will gladly answer your questions and help with your real estate purchase. Contact me for more information about real estate in Temecula: (951) 473-0390