The growing strides of economy are changing the trends of market, even the real estate market. Here are five such trends that have truly revolutionized the housing market of 2016:
- Back to Routine
Early trends are just fulfilling the needs of specific class because of rapid growth in finance but now in 2016 we will set back to usualness. This downtrend is not a sign of failure but adieu to abnormal traditional trends that were causing distress. The new trends will meet with the needs of everyone.
- Gigantic drag of 2016
Two out of three people around the globe were attached to real estate because of millennials. This megacity will continue to in 2016 that will boost up the real estate market both for sellers and buyers. Two generations; Gen Xers and Boomers are prominent in revolutionizing the real estate that will also take prices to normalcy.
- Affordability and Profit pool
Builders of 2016 are more interested in affordability criteria of customers. It will surely increase growth potential and profit. When new-home prices will not exceed the limit and single family construction will be available in affordable price. It will attract all types of customers that will not obstruct entry level and growth potential.
- The rise of Mortgage Rates
If Federal Reserve moves to high interest rates, 2016 will see the tremendous change in mortgage rate and ultimately the rise of the real estate market. High mortgage rates will optimize the monthly payments and debt-to-income rations. As a result future would be green.
- Aggressiveness of rents will encourage home ownership
Rents have exceeded 30% of the average income of people and rents are continuously heating up with every passing day. This unaffordable trend of rents will encourage people to buy home instead of paying a lot of money by simply renting a home, etc.