Housing Trends for 2016

Over the course of the recent economic recovery, a variety of predictions have been made about the future of housing and real estate. Although many people faced foreclosure during the recession, many families have regained their financial strength and have joined or rejoined the rank of property owner.

More New Construction for 2016

Each year of the economic recovery has seen an increased number of people purchasing homes, but the purchases of distressed properties have remained stubbornly high. However, the housing forecast for 2016 seems to suggest that the number of distressed properties, such as short sales and foreclosures, will decrease. 

Real estate insiders expect the decrease in short sales to be offset by additional new construction and purchasing activity of brand new homes.

The increase of new residential real estate Ulster County and other counties around Upstate New York may help first-time homebuyers "break" into the market since the inventory of available homes may increase over the course of 2016.

Young Home Buyers will Enter the Market

For many millennials, buying a home has been difficult because of a lack of available houses and the strict lending criteria adopted by many banks after the housing crisis. However, many millennials are now entering their 30s and looking to put down permanent roots with a new home.

A lack of available houses and veteran buyers with cash on hand has made it difficult for the average millennial to come to the bargaining table with a mortgage. Some millennials haven't even been able to start their home search because of the difficulty of securing a loan.

Millennials won't be the only group entering the market with increased activity. Baby boomers and Gen Xers who were hit hard by the recession have regained much of their financial health and have started to look to real estate for investment.

Homes Will Have a Wider Array of Price Points

One of the most profitable sectors of real estate is the luxury market, and construction of luxury homes, condominiums, and apartments soared in the years immediately after the recession. Real estate watchers expect construction of affordable housing in 2016 to increase alongside recent demand.

Luxury real estate remains the most profitable part of the real estate industry, but market saturation should mean an increase of construction and renovation of homes at many prices from brand new residences in gated communities to newly renovated homes that are ideal for first-time buyers.