Highest Home Sales Since 2006 Predicted for 2016

real estate market trends 2016The realtor.com® 2016 housing forecast predicts that a mix of new construction homes and gains in the existing home market will result in the highest home sale levels in over a decade. New construction real estate is expected to grow, with a 12% increase in new home starts and a 16% increase in new home sales. Total sales for both new construction homes and existing housing stock is expected to reach 6 million for the first time since 2006.

Job creation, credit restrictions to affect 2016 housing market

There are several factors at play in the predicted “moderate growth” for 2016:

  • GDP- The nation’s GDP (gross domestic product) has increased by 2.5%.
  • Jobs- U.S. job creation has soared, with 292,000 jobs added in December 2015 according to the Bureau of Labor Statistics.
  • Credit- Positive movement in GDP and jobs growth is tempered by diminished access to credit.
  • Home prices- Another factor tempering growth in the 2016 housing market is a projected increase in home prices.

Who’s buying?

According to the realtor.com® report, 3 key demographics will drive home sales in 2016:

Millennials: Home buyers ages 25-34 will comprise the largest demographic of home buyers in the coming year. Neighborhood safety and home quality are of utmost importance to this group– good news for Woodstock sellers, as the city has one of the lowest crime rates in Georgia, excellent schools, and a good stock of quality homes.

Young Gen X’ers: 35-44 year olds are expected to come in just below millennials for the largest share of home sales in 2015. Since more than two-thirds of this demographic already own homes, this group will be looking to upgrade into better neighborhoods and larger homes with upgraded features.

Retirees: The 65-74 age group will also have a hand in driving home sales in 2016, with many couples and individuals retiring, relocating, and downsizing. This group shows a strong preference for new construction homes, driving the increase in home building expected this year.

And more good news for local sellers– the Atlanta area (including the north Atlanta suburbs) is expected to be a top market for both millennial and Gen-X buyers in the coming year. For assistance with any of your home buying or selling needs– from upgrading to downsizing to relocation– contact The Premier Group Keller Williams Realty Partners in Downtown Woodstock!

 

Photo by Ambro via freedigitalphotos.net