Latest Trends in the Real Estate Business

Economic growth or failure in the U.S has always a big impact in private businesses including Real Estate industry. I remembered in 2008 when the U.S has a great recession, the housing market has been affected big time. There’s a lot of factors why  Real Estate industry has a big contributions in the U.S government economy. One of the examples are Mortgage. People tend to borrow in the bank because sometimes they cannot afford to buy it in cash even the interest given by a bank is too high. That’s how the process of trends in the Real estate I believe started. It will be depending on the success or failure of the economy.

Here are my some trends in this year 2016 that we should watch on:

  1. Real Estate will go back to normal business – since U.S is just coping up from the previous recession in 2008, in this year it will be started to go back  to normal. The prices will rise at normal rates and will be consistent with balance market. Many constructions will go also to traditional levels.

credit to this link http://www.realtor.com/news/trends/five-key-trends-for-2016/

2. More new mortgage loan products will be needed –As mortgage interest rates rise,              the need for more loan products that don’t require large down payments or years of            mortgage insurance premiums is going to rise in 2016 (credits to Anthony Hsieh, chief              executive of loanDepot.com) If this happen, more people tend to go underwater since              they cannot afford to buy a property since the interest rate is high. What they will              be depending on is the mortgage.

credit to this link: Daniel Goldstein  http://www.marketwatch.com/story/4-real-estate-trends-well-see-in-2016-2015-12-09 )

3. Marketing Trend – technology has a big impact on agents/realtors. The internet                  provides the easiest way to deal with transaction and communication with their                  customers. With the technology that we have, it helps the agents to advertise the                listings on their real estate company.

credit to this link: Goldstein  http://www.marketwatch.com/story/4-real-estate-trends-well-see-in-2016-2015-12-09 

4. Higher mortgage rates will affect high-cost markets –  higher rates will drive                     monthly payments higher, and, along with that, debt-to-income ratios will also go             higher. Markets with the highest prices will see that higher rates will result in fewer           sales; however, across the U.S., the effect will be minimal as the move to higher                 rates will spur more existing homeowners to sell and buy before rates go even                     higher. Homeowners will always have their own tactics to mitigate the increase.

credit to this link http://www.realtor.com/news/trends/five-key-trends-for-2016/

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s