It’s December, which means the end of 2015 and the start of a brand new year for the real estate market. Last year, there were predictions that the U.S. Federal Reserve would raise interest rates in the country, though that ultimately never happened. Though this did cause a trend in increased buying, it may not necessarily be the case next year. What potential trends are on the horizon for 2016? Let’s take a look.
The West Coast has been one of the hottest markets this year and in the past, but there are already signs that cities such as San Francisco and San Jose are showing slower buying activity, and this may continue into next year. This cooling in the West Coast may have an opposite effect in metropolitan areas within the South. Cities in North Carolina have seen significant boosts in year over year activity.
Millennials may also decide to trade up to a larger home. Many of the buyers under this demographic already own a starter home or a condominium, especially those are starting a family. The slight issue is the relative lack of inventory, often due to existing homeowners that decide to renovate based on their needs instead of sell their home.
Other market trends we may see next year include an increasing demand for suburbs that are amenity-rich and older first time buyers.