We are under 30 days and counting before a new year arrives, so it’s not surprising that many organizations are already beginning to distribute their respective predictions for 2016.
To that end, Zillow, the home search portal, recently published its list of predictions for the real estate market. Hence, following are Zillow’s top five predictions for next year:
- The median age of first-time buyers will reach new highs in 2016 as millennials put off homeownership and other major life decisions.
- Growth in home values will outpace incomes, especially for low-income Americans. Those whose incomes fall into the bottom third of all incomes will be priced out of homeownership and unable to afford even the least expensive homes on the market.
- Rising rents won’t let up in 2016 and will continue to set new records. The next year will bring the least affordable median rents ever.
- As affordable housing close to city centers grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel – especially those that offer good access to the city – will be 2016’s new hot spots.
- The median expectation of more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey was for home values to grow about 3.5 percent in 2016.
“Al of this will happen against a backdrop of slowly increasing interest rates,” said Zillow Chief Economist Dr. Svenja Gudell. “That will make some homeowners think twice about selling and many of them will decide to remodel their current homes instead.”
As is always the case with predictions, we’ll have to wait to see how it all plays out. Stay tuned!