2016 real estate outlook:
As we gear up for the dog days of summer, now is a perfect time to take a look at what’s trending in today’s real market. For anyone who is buying or selling in the near future, check out this informative overview as you gear up for your pending real estate transaction!
Check out some interesting stats and facts about the 2016 real estate market.
Who are 2016’s buyer and sellers? The group we are always hearing about, the millennials, is now getting active in the real estate market. They are aging out of college and making their entrance into the market as both buyers and sellers. This 18-35-year-old category now makes up 35% of buyers. The typical seller in today’s real estate marketplace averages 54 years old.
What is the scoop on prices? Trends show that home prices are on the rise with a median of $220,000 just a slight increase year over year. The most expensive homes were purchased at a median of $263,200; the least expensive was purchased at a median price of $187,400.
What factors influence buyers the most? The factors that buyers hold most important to their buying decision have not fluctuated from 2015 and include:
- Quality of the neighborhood,
- Convenience to the buyer’s job,
- Overall home affordability.
Additional factors that rated highly were the distance to health facilities and convenience to friends and family. Proximity to jobs and quality of school districts were more important to the group of buyers in the age range of 35-54, for obvious reasons.
What kind of homes are we looking for (or, more accurately, did we get the home we wanted)? The top three factors that homebuyers were willing to compromise on were: price, the condition of home and size of the home. Additional factors that home buyers were willing to overlook when they found the “perfect home” were: lot size and style of home.
How well did we negotiate on price? It appears that sellers may be driving a hard bargain so far in 2016. Only 27% of buyers paid less than 90% of the asking price; while 52% paid 99-100% of the asking price for their new home. Interestingly 10% paid over 100% of the asking price.
How do we shop for homes? Overwhelmingly and across all ages, the majority of home shopping begins online. From millennials to Gen X-ers to young Boomers, everyone is hitting the web first. The number one rated feature each of these groups is looking for is obvious: photos. Using a Smartphone (in many cases with a mobile app) to assist in the real estate searching process skyrocketed among younger generations. Older segments searched for listings that contained lots of details and information. (Hint to sellers: make sure your listing is detailed and your pictures are great quality. Find some tips on real photography here.)
As 2016 reaches its halfway mark, it’s a great time to check out what’s going on in the real estate market. Whether you are a seller, a buyer or someone who owns the property and likes to stay up to date on the latest indicators, this overview will keep you in the know!
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