A Look Into This Year’s 

Real Estate Market

By Andy Wesier

I

n 2015, we saw some of the best
statistics in years for the real estate
market. A further increase in the

number of sales along with an increase
in the average sale price of homes
showed that there was a lot of positive
activity in the economy. So what is in
store for 2016? We are now well into
spring and indicators are showing that

we are trending towards a more “normal” real estate
market. Let’s take a closer look at the details and forecast
that Realtor.com has provided.

Source of Demand:In 2015, we saw Millennials making
up a significant portion of the buyers that were active.
Realtor.com reported that Millennials accounted for nearly
2 million sales, nearly 

⅓of all transactions for 2015.

Forecasters project that this number will actually increase
for 2016 due to the large group gaining more financial
independence due to the improving economy.

Meanwhile, both Gen Xers and Baby Boomers will also be
playing their part in the market. Gen Xers will be looking to
trade up to larger homes while the empty-nesting Baby
Boomers will be downsizing and heading to more urban
areas in search of an active lifestyle for their retirement.

New Construction: As demand has not decreased and
inventory is still tight, more building has been taking place.
A strong economy with credit access remaining attainable
will help first-time home buyers. Builders are recognizing
the size of this large group of buyers and are planning to
develop the inventory to match the demand. Some of the
developments that were started years ago or put on hold
will also be coming to fruition as the market sustains its
momentum and remains robust.

Mortgage Rates:Mortgage rates were supposed to
increase last year, which they did, but they also
had their dips. This year rates are expected
to have a similar pattern with the year
finishing out with rates slightly higher

than those of today. The increase will add to the average
monthly mortgage payment, yet the extra cost should not
be substantial enough to hinder any buyers from entering
the market.

A Normal Market:Years ago before our most recent
recession, supply and demand were somewhat in line with
each other. In the past 10 years or so, there have been some
dramatic highs and lows as our economy has been adjusting.
Today, many of the distressed properties have been
swallowed up by buyers and new construction has been
increasing. As this trend continues prices should also follow
by showing a more “normal” progression in their increases.

Rental Activity:Currently, more than 85% of the United
States have rents that exceed 30% of the income of renting
households. With statistics like these, it has become more
affordable to buy in more than three-quarters of the U.S
than rent. Until we see rents stabilizing or more inventory is
made available at lower rates, buying will be a more
attractive option this year.

As always, if you have any questions regarding 
real estate in our neighborhood, please feel free 
to contact me.  

I

Andy Weiser

954.560.9667 |AndyWeiser@aol.com

Real Estate

The Landings & Bay Colony

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