It’s hard to believe 2015 is already at a close. But it’s happening, and everyone’s getting ready for the new year and preparing their resolutions. In the real-estate industry, we’re excited for the trends that are predicted to take place in the coming year. This is a business that’s used to big and rapid changes, so we’re looking forward to what the new year has in store for us.
As we enter the new year, there are plenty of agents out there who want to help you with any real estate to-dos you may have.
“2016 looks to be a very lucrative year for real estate,” said Frank DiCocco, manager of Better Homes and Gardens Rand Realty’s office in Closter/Alpine, New Jersey. “There is plenty of business out there for our agents. Agents need to hone their skills, and put themselves out there. The years of sellers and buyers falling in our lap are over. It’s the presence, so let’s make one!”
There is also going to be a potential increase in affordable single-family housing. Before 2016, builders were working more on higher-priced homes, which didn’t meet the financial criteria of entry-level buyers. However, with a decrease in new-home prices and improving credit access, builders will be focusing more on constructing homes that are more affordable for new homebuyers. If you have a family, this news couldn’t be better, so if you’re looking for a new home in 2016, keep searching for low home prices throughout the year to see if any fit your financial requirements.
One source’s prediction says home prices may start to decrease, which will influence potential buyers to revisit the market and see if there are any properties they will be able to afford. A lowered price is the best thing a buyer could be given, so 2016 is a year where you’ll want to take advantage of the lowered prices and search for your dream home. With this, you must keep an eye on the market, and also consult with your agent about their views on the industry. Once you have a better idea of the market’s current state, it will be time to dive in.
Although some people believe home prices will lower in 2016, Better Homes and Gardens Rand Realty’s third-quarter market report details that home prices will rise in the new year, therefore creating a seller’s market. Because of these increased prices, this will cause more home sellers to list their properties. Home sellers will want to receive as much money as possible from their property, so they will be eager to place their homes on the market.
The real estate industry is more technological than it has ever been before. With smartphones, tablets, computers, and social media, we are given countless options when it comes to exploring potential real-estate investments. It has become difficult to think how we would have managed this in the past without the availability of these digital-age tools. However, despite the tremendous help modern technology provides for those searching for real estate, you can’t forget it’s the human touch that has been in the real-estate industry since the beginning. After all, you’ll be dealing with an agent the entire time, so it’s important to establish a friendly connection with them as you traverse through the ever-changing real estate market. Having someone to speak with who can provide firsthand knowledge of the real estate market is a wonderful service when buying or selling, so you should value the human factor as much as the technological one.
Parking has been an important factor for real-estate clients for decades. After all, who wants to buy a house without a proper place to park their car? However, it may be surprising to know parking will be seen as less of a concern among homebuyers in the new year. Lately, it has appeared an increasing number of buyers are forgoing cars and are instead using public transportation, cycling, and ride-sharing apps, such as Über. This is especially understandable for those looking to live in the city, seeing as parking normally costs extra and is rather difficult to find.
We will also see a greater solidification of generational buying trends. It has been evident lately that millennials make up a significant portion of current homebuyers, and that doesn’t show any sign of stopping. Nearly two million sales in 2015 involved millennial consumers, which equals about one-third of homebuyers. Despite the attention millennials are receiving in regard to the housing market, it should be noted there are two other demographics that will make an impact in the 2016 housing market: Generation Xers recovering from the financial crisis, and retiring baby-boomers who are looking to downsize. With these three very different generations looking for homes in the new year, we will see a surge in both the buying and selling markets, which will surely make for an interesting and lucrative year in the real estate industry.
A new year includes new beginnings, so whether you’re planning on buying or selling a home, these are a few trends you’ll want to keep track of. The start of a new year is a perfect time to be optimistic, so let that optimism carry you throughout the year as you work to accomplish any real estate goals you may have. With that being said, I wish you all a wonderful and prosperous 2016!
Back in March, a study done by the National Association of Realtors revealed that the largest group of current homebuyers were millennials, those who are 34 years old or younger. With todays’s changing demands of what homes should include, there are certain things that millennials look for. Because of that, millennials have become an increasingly important market segment in real estate, and if you’re a millennial, like myself, you should have an idea of what to look for in a home.
The kitchen and bathrooms of a home can become a very costly renovation, so if you’re on a budget due to student loans, car payments, etc., it will be better if you purchase a home that already has them upgraded. When buying a home, you already know you’ll be putting a lot of money into it, so you shouldn’t have to worry about spending additional expenses on upgrades in your new home. Plus, you don’t want to become more stressed in an already stressful time. Although there might be a few things you’ll want to fix after you have settled into your new home, you don’t want to have to focus on shelling out more money for significant renovations later on.
Another important feature you should look for in your home is an office. If you have a family and want to do some work at home, it’s beneficial to have your own separate place where you can go and be alone to get things done. Given how mobile our generation is, the ability to work from home has become a lot more attainable, depending on your profession. If you normally work from home, this is a very useful amenity. If you usually work away from home, you can still use a home office on weekends or other days off when you’re in the mood to get some work done.
Location is another significant factor that you should take into consideration when searching for a home. When thinking about a location, you have to contemplate what will work best for your situation, such as needing access to public transportation; or, if you have children, looking for an area that’s a little more suburban and has a great school district. You don’t really know for how long you’ll be living in a certain home (you might find an even better one in the future), so you want to be sure that it’s not just the home that you think about, but also the location, the community, and what that area offers.
We live in a reality-TV era, and when you’re looking for a new home, there’s a chance that you might get hooked on a reality television show or two about real estate. While it’s okay to watch these shows from time to time, you shouldn’t let your expectations get out of hand as to how the home-searching process is going to play out.
“The millennial buyers are the buyers who have had the most exposure to the popular TV shows that showcase real estate,” said Donald Dwyer, real estate associate broker for Better Homes and Gardens Rand Realty and manager of its Yorktown office. “In watching these shows, they are often influenced by transactions occurring out of state and frequently come to our agents with unrealistic expectations. These expectations are often about the condition of homes, size of bedrooms, price, and seller concessions.”
If you’re a millennial, you’re most likely going to ask about the home’s technology. According to a 2013 survey done by Better Homes and Gardens Real Estate, 56 percent of millennials say that technology is more important than curb appeal, 64 percent wouldn’t live in a home that doesn’t have the latest technologies, and 84 percent believe that modern technologies are a must-have for a home.
Given how mobile devices and the Internet are used heavily in our day-to-day activities, you’re going to be looking for homes that are compatible with today’s technology. In this case, a home that includes excellent phone reception from a mobile carrier’s signal and a Wi-Fi connection from a service provider will certainly be high on your list during the searching process.
“Millennial buyers tend to be very tech-savvy and love to search for homes on their own,” said Dwyer. “They attend open houses and are highly selective. They only involve an agent when they have found a particular home they want. Many of these buyers are straddled with college debt, which often makes them less eligible to buy the house that fits their dreams, which can pose a challenge for their agent. Millennials are going to be 90 percent of the workforce in a decade, so agents must be prepared to work with them and stay ahead of the technology curve.”
Speaking of the Internet, more than 80 percent of homebuyers (of any age) use it for their home search, according to the NAR. So, it’s important that a property looks as appealing as possible to potential buyers when they look online. As a millennial, I know our generation is used to having crystal-clear images on our computers and cell phones, so I’m sure you don’t want to see home photos that are grainy or out of focus. The photos should grab your attention and interest, and that can’t happen if you need to squint at the image.
Being a millennial, I know you want to have the latest entertainment and backyard features that will offer your guests a memorable time when you invite them over. If your budget allows it, having something like a patio, a pool, fire pit, a big-screen TV, or a basement built for entertainment purposes will attract family and friends to your home. Once you purchase a new home, you’ll want to throw a housewarming party, so including any of these fun amenities will have your guests coming back.
If you’re a millennial homebuyer and are just starting out on your search for a home, make sure to find a place that fits your needs, but don’t go for more than you can afford. Owning a home is a huge responsibility, but if you know what to look for, your search will be a successful one.