We’re more than half way through 2016, so now is the perfect time to take a look at how the real estate market has evolved so far this year and where it’s headed. After all, the real estate market has a major impact on your career, so it’s important to stay informed. So let’s take a peek at how the real estate market is performing in today’s article from Southern Connecticut Coldwell Banker Realtor Judy Szablak and founder of Szablak Consulting.
A Look at the 2016 Real Estate Market Conditions
In 2016, it has become clear that the real estate market has evolved into something that is much calmer and less tumultuous. In 2015, nationwide, home prices increased 4%, following a 6.4% hike in 2014. That’s according to Clear Capital, a provider of real estate data and analysis.
According to forecasts from Kiplinger, home prices will moderate even more in 2016, rising 3%, which is at the low end of the historical range.
Thus far, home values have increased in 236 of the 276 cities that are monitored by Clear Capital. But despite this rise, home prices remain nearly 19% below their peak, on average. Over the past year, prices rose by double digits in a few dozen cities, many of them clustered in areas that were hard-hit, with real estate still relatively cheap, such as Florida, Michigan, Nevada and California’s Central Valley region. This has not been the case for Connecticut, New England and other areas of the nation.
Some of the cities with the biggest gains include Miami, which is up 10.1%, and Seattle, which is up by 10.6%. These regions have both benefited from a rise in sales to international investors.
In terms of supply, 2016 has been fairly tight for the housing market nationwide. Inventory has hovered at a five months’ supply (which is the time it would take to sell the current number of homes on the market at the current pace). This is considered an equally favorable figure for both buyers and sellers.
This year, many homeowners seeking to sell have faced a chicken-and-egg situation. They won’t list their home until they’ve found their next home, and they can’t do that until there are more houses for sale. But new construction has been on the low end so far this year, with developers seeing a shortage in construction loans, skilled labor and build-able lots. So it’s expected that this situation will continue for at least the foreseeable future.
There’s also some good news in the area of home loans and equity. Interest rates are still quite low, while the number of homeowners who are upside down on their homes (owing more on their mortgage than their home is worth) is gradually decreasing. According to the latest figures from RealtyTrac, approximately 13% of homes with a mortgage are underwater by at least 25%.
In all, though, the real estate market remains in good condition, with movement in the right direction — great news for buyers, sellers and Realtors alike.
Tips to Grow Your Career With Szablak Consulting Founder and Realtor Judy Szablak
A career consultant like Judy Szablak can provide new real estate agents with valuable insights and recommendations that put them on the path to success in today’s competitive real estate industry. A consultant will not only offer advice and recommendations, but she will also share her valuable knowledge and expertise on topics such as online marketing for Realtors and social media marketing to get leads, to sales motivation tips and other tips to sell more homes!
Aspiring top producing real estate agents may also with consider reading Realtor Judy Szablak’s related article with advice to help you enjoy a long lasting real estate career.
If you’re ready to take your career to the next level or are just starting working as a Realtor, turn to real estate professional and consultant Judy Szablak, founder and CEO of Szablak Consulting and Best Agents Online, LLC. With Judy’s guidance and expertise, you’ll take your career to incredible places, finding success that’s beyond what you believed to be possible!
If you’re a real estate agent who is ready to elevate your sales or if you’re a realty owner or manager who’s seeking a dynamic, expert coach to bring a new element of professionalism to your sales team and your brokerage firm, turn to Realtor Judy Szablak of Szablak Consulting. Call 855.438.5839 or complete the booking form.