Real estate in 2016 might look a lot like 2015, but a little more “normal.”
As we know, last year’s real estate market recovery was remarkable, and we saw healthy trends that we hadn’t seen since before the housing crisis. After a long recession, it may have even seemed as though the improvements were sudden and drastic.
We’ll continue to see improvements into the new year at a slower, more gradual pace–an indication of a return to normalcy, according to realtor.com’s chief economist. He notes, “we’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of normal conditions.”
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Another trend that will continue is a growing market of buyers. Millennials have already started to make big moves as first-time homebuyers, and those numbers should only increase. Financially recovering GenXers may also re-enter the housing market as well as baby boomers who plan to relocate or downsize to accommodate their changing lifestyle.
Spending on construction spiked last year and the number or permits and new builds has been steadily rising. We’ll continue to see this into the new year, and builders will likely start to focus on more affordable homes for entry-level buyers.
Two other market components that will continue to rise: mortgage rates and rent. While we’ve seen record low mortgage rates for years, they should start to increase and level out over the next year. And renters, hold on to your wallets, because already sky-high rental costs are expected to get higher and higher.
All considered, Sanibel real estate and real estate across the country is looking good for 2016, and it looks like good is becoming the new normal.
Interested in Sanibel real estate? Whether you’re buying, selling, or would just like to learn more, contact us, search our MLS for available properties, or get in touch with one of our Sanibel realtors.
Source: floridarealtors.com
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This article is provided by John R Wood Properties, a full service Sanibel Island real estate agency made of people who love where they live as much as what they do. With local knowledge and decades of combined experience, our Sanibel and Captiva Island realtors are passionate and dedicated to exceeding your real estate needs.
About the author: Nina Rogers is a writer, designer, and illustrator who grew up on Sanibel Island. As a Communications Content Manager for John R Wood Properties, Nina enjoys keeping people updated with the latest in local news and Sanibel real estate.
