After reviewing an article provided by Reuters on an interview with Svenja Gudell who was recently appointed chief economist for Zillow.com.
- Which real estate markets will be hot in 2016? Due to factors like unemployment, population growth, home value and inventory decline, the markets in Boise, Idaho, Salt Lake City, Utah, Omaha, Nebraska, Denver, Seattle, Dallas/Fort Worth and Portland will stand out from the rest.
- Any areas that should be forgotten? No. Cities are good at reinventing themselves it’s just a matter of finding one that fits you and/or your family.
- How will location play a factor in 2016? Cities across the country have pretty low inventory right now. So first-time home buyers will probably look more toward the suburbs, but they must be denser and have a higher walk-score.
- How did the Feb rate rise affect real estate? The real estate markets across the country have not yet responded to the Fed rate increase. There were a lot of expectations about a rise that were already addressed before it happened. As the rates continue rising, the coastal areas like Seattle, San Francisco, New York and Miami will be impacted first.
- Are millennials going to start buying? Yes, however it won’t be a rush it will be a trickle. Millennials are getting married later, having children later and buying homes later in life. With low inventory, the lower price levels are thin and there is a lot of competition.
- Should we be optimistic? Yes. Some markets will turn over quickly with high competition and others will be a bit slower but the trend is moving forward.
HUD also puts out a report on new residential construction each month so I reviewed the December 2015 report. Privately-owned housing starts in December were 2.5 percent below November but 6.4 percent above December 2014. Privately-owned housing completions in December were 5.6 percent above November and 7.9 percent above December 2014.
As we can see from our local Greenville market although existing homes are being turned over due to low inventory, new housing starts are being permitted, built and sold upon completion. This leads to a good balance in our market for existing home sellers versus new construction. Homes in suburbs closer to downtown Greenville might fair better with the younger buyers than homes farther out. Millennials want to belong to closer knit communities where driving is an option not a necessity.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.