2016 Real Estate Predictions

Let’s kick off the New Year with the experts’ 2016 Real Estate Predictions!


Mortgage Interest

Markets really haven’t reacted much to the slight increase the Fed did in December… because a lot of the expectations of the rate increase was already built into the current mortgage rates.  However, many believe that mortgage rates will likely be volatile in 2016.

Housing Inventory

Many areas are still suffering from a shortage of homes for sale (relative to demand). This supply-and-demand imbalance could continue to push home prices north in 2016, as buyers compete for limited inventory.


Location is always important…. However, cost itself and nearby amenities will be most important.


The rental costs are skyrocketing in several areas, and the costs are likely to only go up in the new year as vacancy rates decline.

Home Sales/Price Growth

Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com®’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

Job Gains

2015 saw an increase in jobs through the USA….  this means there are more people in a position to buy a home. So we could start 2016 with a lot of demand for homes.

*********  What questions or thoughts do you have about real estate in 2016… We would like to hear from you; so, please call or write to me!


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