The year of 2015 might have been the best one for real estate since 2007, and it is believed that 2016 will be even better. According to NY times, in 2014, there were over 200, 000 jobs gained. It is projected that the employment will continue to rise in 2016, and that will allow more people to buy a home. Here are the trends that might have the biggest impact on real estate.

1. Growth in home sales and prices. Home sales increased in 2015 and they will continue to increase in 2016, but it will happen at a more gradual rate.
2. More Millennials will be buying. There are 80 million Millennials in the US and last year they represented about 2 million sales and this pattern will continue in 2016. Another reason they will be buying more is that rent prices will rise even higher this year.
3. New constructions will be cheaper. New-home builders would like to build more affordable houses to cater more to the first time homebuyers.
4. Mortgage rates might be higher. In 2015, mortgage rates were going up and then down again; it will continue to fluctuate, but by the end of 2016 the rates are likely to go higher.
5. Rent will be even more expensive. Rent has been high for the past year and this year it isn’t going down any time soon. In fact, rent will continue to rise this year. Millennials are the ones who drive the demand.

These are just some of the trends for the new year; just keep in mind that it is almost impossible to predict any market, but it is important to analyze real estate statistics, adapt to the changes and to strategize.

Flickr Creative Commons: Mark Moz (CC BY 2.0)
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