The year is about to end but what do investors have to say about next year’s real estate market? Nela Richardson, chief economist for Redfin, a national real estate brokerage firm, said that a rate increase won’t be likely.
1. Slowing coastal markets — Ralph McLaughlin, housing economist at Trulla said that areas where the priciest homes are located (West Coast and Northeast areas) will see signs of slowing compared to the previous year. It is very noticeable in real estate markets in San Francisco, San Jose, Southern California and in the Northeast.
2. Booming market areas in the South — McLaughlin further speculated that areas like the metros of Winston-Sale and North Carolina will spark as buyers migrate to the south. Baby boomers and young investors will choose the south to escape the cold.
3. Increase in suburban properties — Svenja Gudell, chief economist from Zillow hinted that amenity-rich suburbs are more preferred than densely populated cities. Future homeowners are looking for better amenities such as easy access to commercial establishments, supermarkets, dry cleaners and other conveniences of suburban living.