According to the recently released housing forecast from realtor.com, the housing market is expected to be a picture of moderate, but solid growth in 2016. Jonathan Smoke, realtor.com’s Chief Economist, noted that the market will steadily grow “as acceleration in existing home sales and prices both slow to 3 percent year over year due to higher mortgage rates, continuing tight credit standards, and lower affordability.”
Who will be the top home buyers in 2016? The report forecasts that Millennials, Gen X-ers, and retirees will be the three largest groups of buyers in 2016, groups that accounted for the majority of 6 million homes sold this year.
Millennials, buyers aged 25 – 34 years old, are expected to make up the largest demographic of home buyers in 2016, having represented 30 percent of the existing home market. Driven by increasing income, millennials will seek out homes in big cities such as Atlanta, Pittsburgh, Memphis, Boston, and Austin in 2016.
Accounting for 20 percent of home purchases in 2015, Gen X-ers, buyers aged 35 – 44 years old, will be back in the market again targeting cities such as Atlanta, Denver, St. Louis, Charlotte, and Columbus in 2016.
The third largest group of buyers this year will be retirees, buyers aged 65 – 74 years old. This group will be focused on selling their current home in an effort to downsize and lower their cost of living, escaping to cities such as Boston, Sacramento, San Diego, Sarasota, and Cape Coral.
The Housing Forecast also explores the top 10 growth markets for 2016, noting that surging demand in these markets can be attributed to growing household formation, a prosperous job market, and low unemployment rates as well as large populations of millennials, young gen-Xers and retirees. You can view the full list of growth markets on realtor.com – some of the locations may surprise you!
Check out the rest of the 2016 Housing Forecast to learn more and to take a fun pop quiz to test your housing knowledge.
Are your listings reaching consumers who are actually ready to start the real estate process? Click here to download our step-by-step guide to creating Facebook ads that target consumers based on life events such as new marriage , new job, retirement, and more. By targeting your advertising, you can fill your pipeline with higher quality leads!
