Mark Hunke

Denver Real Estate Specialist

The Mark Hunke Team
Your Denver Real Estate Experts
Call Us Today
303-619-7793
  • Home
  • Luxury Communities
    • Castle Pines Village
    • Chenango in Centennial, Colorado
    • Cherry Creek
    • Cherry Hills Village Real Estate
    • Denver’s Country Clubs
    • Denver Executive Homes
    • Denver Highlands
    • Greenwood Village
    • Highlands Ranch Real Estate
    • Observatory Park
    • Park Hill Colorado
    • Polo Grounds Colorado
    • The Preserve Colorado
    • The Pinery, Parker, the Club at Pradera
    • Red Rocks Country Club, Willow Springs, Willow Brook
    • South Aurora, Colorado Real Estate
    • Washington Park
  • Luxury Home Search
    • Luxury Home Search Form
    • Featured Properties
    • Map Search – Denver Luxury Homes
    • Find My Dream Home
    • Denver Relocation Guide
    • Get Luxury Property Alerts
  • Buyers
    • Buying a Home
    • Step 1 – Choose a Realtor
    • Step 2 – Get a Loan!
    • Step 3 – Research the Neighborhood
    • Step 4 – Submitting the Offer
    • Step 5 – Closing The Deal & Moving In
  • Sellers
    • Sell Your Home
    • Selecting a Professional Denver Luxury REALTOR®
    • Are You Ready to Sell a Luxury Property in the Denver Area?
    • Determining the Listing Price
    • Real Estate – Selling Your Home FAQ
    • What’s the Best Listing Price For Your House?
  • Finance
  • About
    • About Mark Hunke
    • Denver Real Estate Blog
    • Letters of Recommendation
    • Realtors – Join The K Company
  • Contact

Which Real Estate Trends Will Dominate in 2016?

February 11, 2016 By Mark Hunke

Ask almost any real estate agent, and they’ll probably tell you that 2015 was the best year for the housing market since 2007. According to a recent real estate forecast from the National Association of Realtors, 2016 may be even better. Here, you can learn about the five trends expected to dominate the real estate market in 2016.

#1 – Generational Buying

For years now, real estate analysts have predicted that today’s young adults will eventually make their way into the housing market. In 2015, millennials represented some two billion home sales, and they will continue to make up a huge chunk of homebuyers in 2016, according to experts. However, millennials aren’t the only major factor in the housing market for 2016. Generation Xers recovering from the 2008 financial crisis and baby boomers entering retirement are also expected to play a vital role in keeping the real estate market stable this year.

#2 – More Affordable New Construction

In years past, new home constructions were geared primarily toward the market. In other words, builders constructed houses that people who were already in the home-buying market wanted. Things like limited labor and climbing costs of land prompted these builders to focus on building luxury homes, but this is all set to shift in 2016. With many first-time homebuyers entering the market, and with improved access to credit among those first-time buyers, builders will begin to cater to that segment with more affordable new builds.

luxury homes mortgage rates#3 – Climbing Mortgage Rates

Experts believe that mortgage rates in 2016 will be volatile, at best. The Federal Reserve decided to guide interest rates a bit higher in January of this year, and this means that rates across the nation may begin to increase slowly but surely. However, according to some, these increases will be mitigatable, particularly among first-time homebuyers with newfound access to credit. It is the luxury home market that will see the effects of the higher interest rates the most due to increases in debt-to-income ratios and higher monthly mortgage payments.

#4 – A Return to Normalcy

Economists predict that 2016 will be the year that the housing market finally returns to normal after some 15 years of strange trends. The low mortgage rates spurred by the federal government after the housing bust have certainly done their magic, and people are back to buying homes at a steady rate. However, although 2016 will see some growth in the market, it will likely be at a slower pace than 2015.

#5 – Skyrocketing Rent Costs

Today, some 85% of the housing markets across the country have an average rental cost that exceeds 30% of the income of their households. While home prices themselves are finally leveling out, the prices of rent continue to climb in many areas – including small towns, where rental prices have been fairly low for the last decade or more. It is less expensive for families to buy homes in about 75% of the country, but for many of the households paying rent, homeownership is not an option due to limited savings and poor credit.

If you plan to buy or sell a luxury home in 2016, these trends may have an impact on the time it takes to sell your home and even your asking price. Remember that mortgage rates are set to increase steadily throughout the year, so the sooner in 2016 you buy or sell, the better.

Filed Under: Real Estate Tagged With: luxury homes

Recent Posts

  • New Home Sales Slow Despite Lower Prices
  • Higher Credit Scores are Coming: Are You One of the Lucky Ones?
  • The Housing Market Slump Still Exists in Some Locations
  • Fewer New Builds – Why the Sudden Slowdown?
  • Do Walk-In Closets Improve Home Values?

Categories

  • Centennial Colorado
  • Cherry Hills
  • Denver Area
  • Denver Real Estate
  • Energy Efficient Properties
  • Financing
  • Greenwood Village
  • Highlands Ranch
  • Home Buyers
  • Home Rentals
  • Home Sellers
  • Investment Properties
  • Job Market
  • Luxury Homes
  • Parker Colorado
  • Real Estate
  • Uncategorized

Search for Homes

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
5-star logo
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®