We are talking about the residential real estate market and brokerage firm Redfin’s predictions for 2016. Please note, Redfin is just one brokerage that does this kind of analysis. RealtyTrac, CoreLogic and many other companies also monitor market trends and publish regular reports. There are usually minor differences in the data, but they tend to agree on general trends.
The good news is that the home sales should continue to increase, though at a slower rate they did in 2015. And, home sales will continue to increase, though, yes, at a slower rate than 2015.
That is, the number of sales will increase. The pace will be just the other side of leisurely. Millennials, the largest generation now, have resisted joining the ranks of homeowners. Redfin predicts that will change, with one caveat: Millennials are not likely to act hastily. Home sellers should expect to their property to be on the market for a little longer this year.
When buyers pay cash, real estate transactions move quickly. When buyers turn to mortgage lenders, the process can take more time. Redfin asserts that fewer buyers will pay cash this year — another reason sales and closings will take longer.
Finally, Redfin suggests that it will almost be a seller’s market. Fewer homes will come on the market, but the typical 2016 buyer is willing to walk away from a price that looks too high.
Our own housing market has fared pretty well. While Minneapolis’ median home price is generally lower than the national median, Redfin’s data shows that we saw about the same rate of growth last year. Inventory has been flat compared to the national trend. Right now, we are headed toward the lows we saw in 2013 and 2014.
If you have questions about your own home purchase, consider working with a real estate attorney. He or she can help every step along the way. Everything, that is, but the kitchen sink.
Source: Housing Wire, “Here’s why 2016 will bring good news for potential homebuyers,” Brena Swanson, Dec. 14, 2015