Summer 2016 Real Estate Wrap-Up
Sep 28, 2016 | Market News
Recap on Summer 2016 Real Estate Market
So far, this year in real estate has been extremely positive. This summer proved to continue this trend, with home sales increasing 5% compared to just last year! If this trend continues, it is believed that 2016 may be the best year for real estate that the U.S. has experienced in over a decade.
Lack of Inventory
This summer, we saw that many people wanted to buy a home – however inventory is not keeping up. There are not enough homes available to meet the demand so many people who would like to buy have not been able to secure a home just yet. As more homeowners realize the benefits of selling with all of the equity currently in the market, this should free up a ton of inventory in the coming year.
Millennial Market Still Stagnant
Unfortunately, even with the rise in home sales we are not seeing many millennials enter the home buying market. This may be due to the lack of housing inventory mentioned above, and therefore more competition for buyers. However, when this issue resolves we will hopefully begin to see more millennials realizing the possibility of homeownership.
Interest Rates Remain Low
The Federal Reserve announced in early 2016 that interest rates would begin rising throughout 2016 in small increments. To date, we have not seen this happen due to market volatility. This resulted in even more home sales this summer as buyers took advantage of these low rates.
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