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2016 Market Changes
December 29th, 2015 7:36 AM

2016 Market Changes

Barbara’s Blog:

As a brand new year approaches, there will be some demographic shifts that will have some impact on the real estate industry, according to an article in a recent real estate magazine.  Here are some of the issues that top the list:

“Retiring Baby Boomers and potential Millennial homebuyers will have a big impact on real estate.  For seniors, housing needs will shift to homes where they can age in place.  They may downsize, select senior communities or enter assisted living.  Millennials will make choices on whether to buy or rent, and their location will have a big impact on their decision.

Interest rates have been near record lows, but most experts predict they will rise sooner rather than later.  Higher interest rates could prompt an increase in short-term commercial development and slow home sales.  However, if Millennials get into the housing market before interest rates rise too much, they could help create a “second wind” for the residential market.

The U.S. dollar remains strong, but the global economy is being affected by currency devaluation in many other countries.  Investment from foreign buyers helps to boost the U.S. housing market, but there is a risk if currency devaluation continues in other countries too.

U.S. real estate remains attractive to investors across the globe.  The supply is driven by economies that have high savings rates, a shortage of mature financial markets and few safe assets.  The investment rate is approaching record highs, presenting the potential for pressure on investments in the future.”

There seems to be local market changes as a resumption of short-term rental construction gives the “déjà vu” feeling of the pre-real estate bubble bust.  Hopefully, this will not be the case, but with more residential construction and communities and a change in local demographics, we will one day see the retail shops and restaurants that are much needed here. 

Written by Barbara Doeringer

Allen and I wish all of you a very HAPPY NEW YEAR!!

Posted in:Real Estate
Posted by Allen Doeringer on December 29th, 2015 7:36 AMPost a Comment

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